Financial Times , 1982, UK, English

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CHEMICALS
METALS
ELECTRONICS

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PUBLISHED IN LONDON AND FRANKFURT ■ H 1 I 1 I

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6A^Trt^cI!o l S?i 0 ^WL .\ Thursday June 3 1982 ***30p UhMBS^m'

-r— ; CONTlWgtfrAL SEIHWG P RICES; AVSTRtA Sch.15j BOGUg^, Ff KjcjQ; FRANCE ft 6.00; GERMANY DM2.01 ITALY L 1.000; NETHERLANDS FI 2 Jft NORWAY ICr6.00; PORTUGAL Ess 60; SPAIN PtaBS; SWEDStf KrS.00: SWITZERLAND ¥t2JH EIRE SOp; Mfteivibly btjpn.—-

trusteeship of Falklands
j?ope has changed acceptable to Argentina

The Pope left Britain with the
simple farewell “May God bless
ybnall” ' "■

He Sew from Cardiff to Rome
after his sbs-day . visit which
took him more than I t 000 miles-
around Britain. Throughout the
visit;, the first, made by a reign-
ing .-Pope, Be made repeated
calls for peace. Church unity
was also an important topic
during talks .with Protestant
leaders. . .

GENERAL

Threat of
pit strike
grows

Threats of " industrial action
by -miners increased when
Kent’s 3,000 pit workers voted
far an all-out strike from June
19. They are fighlfng the
planned closure of a mine and
want support from other NUM
members.

Action by the Kent miners
has already had advance sup-
port from miners’ union presi-
dent Arthur ScargiU. He has
said he will call for a widening
of the dispute at the union's
executive meeting next week.
Back Page

Troops cut plan

The Mato summit in Bonn next ’
week will endorse a revised
programme to reduce Nato and
Warsaw Pact troops in Europe
by 370,000. Back Page

Sex-change Win

GEC Communications in
Coventry reinstated an engineer
dismissed, when, he; decided to
change sex. . . An : . industrial
tribunal ruled sacking illegal
ind 2jm- colleague s xolefcforr
remirtaJement... • '■

S. Korea moves

South Korea’s President. Chun
Doq Hwan reshuffled his cabinet
for the second time in a fort-
wlght after a mdlti-niUUon dollar
loan scandal. Page 3

Cable TV call

The Independent Broadcasting
Authority said it is against
advertising on cable television
an.d anything which would dam-
age the 'present BBC and ITV
basic services. Page 8

: C

Musicians defect

Three Polish musicians from the
. Krakow Philharmonic Orchestra
defected after a concert in
Bergen, Norway.

Petrol price up

BP Oil raised pump prices for
petrol by 7p a gallon, taking
the average price to 169p a
gallon. Market leaders - Shell
and Esso are expected to fololw
within a few days.

CND rethink

A High Court' judge ordered
Environment Secretary Michael
Hesettine to reconsider his
decision to ban music at a CND <
rally in London’s Hyde Park on .
Sunday. 1

Transport plan i

A future Labour government j
would farm a National Trans-
port Authority' to integrate i
transport policy, according, to a 1
document drawn up by the party :
and transport unions. Back Page <

i

Derby winner

Golden .. Fleece, the' 3-1
favourite, won the Derby. It (
was trainer Vincent O'Brien’s j
sixth Derby win.' Baring, Page 15 ■

'After (he' Pope left, (he Arch-
bishop of Canterbury, Dr
Robert R uncle, said: “The after-
math Is going to be significant.
The -Pope has, I believe, In
what he has done here, changed
the map about Christian unity.*’
On his final day the Pope
visited Wales and was giyeira
tremendous reception by more
than 33.00Q cheering youngsters
in Cardiff City’s Ninian Park
ground. A joyful pageant,
Page 10.

BUSINESS

£firm as
$ weakens;
gilts steady

• STERLING rose 50 points to

JL7925. DM 4JS45 (DM 4L235),
SwPr 3.162 (SwFr 3.605>,
FFr 1L045 (FFr 10199; and
Y438^ (Y435;. Its trade-

weighted index rose to 90.7
(90^;..Page 40 '

• DOLLAR weakened to
DM 2.3675 (DM 2-3775).
SwFr 2.0175 (SwFr 2.0225) and
FFr &165 (FFr 6.175). Its trade-
weighted index was 115.7
(115.4). Page 40

• GOLD rose $2.75 to $320^75
hr London. In New York, the
Coinex June dose was 532 (L30.
Page 40

f GILTS were maintained by
the firmness of sterling in slow
trading. The FT Government
Securities index edged up 0.02
to 69.76. Page 39

• EQUITIES tended easier in
thin Trading. The FT 30-sharc
index slipped 2.2 to 585.1. Page
39 .

• TV ALL STREET was up 3.05
at 81 8. Q2 near the dose. Page 32

• TIN PRICES fell £205 to
£6,470 . a loune on the London

BY HUGH O’SHAUGHNESSY, LATIN AMERICA CORRESPONDENT

| ARGENTINA is willing to
accept a form of UN irusLecdlip
for the Falkland Islands during
a limited period, provided UN
administration of the islands
is backed up by Argentine end
British advisors, according to an
official spokesman here.

Also, -the government here
has withdrawn its demand that
.the British task-force quit the
Falklands region altogether. It
is now willing to accept a Royal
Navy presence no nearer than
150 miles from the archipelago,
in the context of a withdrawal
of Argentine and British troops
.from the islands themselves.

New concessions were being
presented Sr Javier Perez de
Cuellar, the UN Secretary-
General; by Air Force Briga-
dier Josd Miret. the planning
secretary, Rear-Admiral Benito
Moya, head of President Leo-
poldo GaUrteri’s military staff,
and General Miguel Mallca Gil.
the Argentine military attachd
in Washington, who arrived in
New York from Buanos Aires
yesterday.

In New York, Sr Perez de
Cuellar, reporting to the UN
Security Council on his , latest
week-king efforts io achieve
peace, said last night thaf he
had been unable to obtain
agreement on a cease-fire. But

his remarks were n»de before
he had seen the three Argen-
tine envoys. Sr Perez de Cuellar
offered to continue, io try io
achieve a diplomatic settlement
of the conflict.

Speculation that a last-minute
negotiated settlement to the
Falklands dispute might still be
reached was provoked by a
statement made by Sr Nicanor
Costa Mendez, the Argentine
Foreign Minister, during. a stop
at Brasilia a i rpo rt on his way
to Havana for a meeting of non-
aligned States.

“We ran still believe in a
peaceful solution," Sr Costa
Mendez said. “I. believe that
there is still a very tenuous
hope, that there is still a very
little time left to convince Mrs
Thatcher.”

However, British officials at
the UN continued to insist that
the terms on which Britain
would agree to a cease-fire must
include an unqualified Argen-
tine commitment to withdraw
from the Falklands.

Before Brig Miret left Buenos
Aires on Tuesday night, he
claimed he had been given a
" set of ideas in the form of a
directive from the governing
military junta," which would
aHow him and his colleagues to

reply io any proposals made by
the Secretary-General without
reference to Buenos Aires.

The new concessions — which
Argentina is presenting as its
“ultimate negotiating effort."
designed to halt bloodshed as
sides prepare for the battle
for Port Stanley, the Falklands
capital — are alluded to in an
article yesterday morning in
La Nueva Provancia. This daily
newspaper, published in the
coastal city of Bahia Bianca,
has frequently been used to
leak Government plans.

The reliability of the article
was confirmed by officials in
Buenos Aires. They repeated
arguments that Argentina has
much faith in the UN, where
at believes it ran command a
majority of votes favourable to
an eventual . transfer of
sovereignty over the Falklands
to Argentina

*’ Argentine public opinion
may not. in the past, have been
ready to accept the idea of a
UN trusteeship of the Falk-
lands. but it is now.” com-
mented a senior official.

The reports of Argentine
acceptance of UN trusteeship
came as diplon^tic and military
sources were ' threatening that
Argentina would maintain
hostilities against British forces

on the Falklands. if its forces
were thrown off the islands. In
the absence of a negotiated
agreement, it is said here,
attacks on the Falklands would
be mounted from the Argentine
mainland and British assets,
already subject lo official super-
vision, would be s umma rily
confiscated.

Brigadier Miret is expected
to renew his contacts with Mrs
Jeane Kirkpatrick, the U.S.
ambasador to the UN, who is
seen here as one of the
influential friends of the junta
in senior positions in the
Reagan AdnuriNtration, who
also include Vice-President
George Bush. The well-
publicised differences of
opinion beiwen Mrs Kirkpatrick
and Mr Alexander Haig, the
Secretary of State, have been
followed closely here, with the
junta eagerly hoping for Mr
Haig’s discomfiture.

As someone who served
several years as defence
attache in Washington,
Brigadier Miret knew Mrs
Kirkpatrick Before the Falk-
lands crisis and is viewed here
as the senior officer most
familiar with the U.S. Admiral
Moya is a close confident of
General Galtieri.

Falklands Crisis, Page 4

Thatcher seeks
support on battle
for Port Stanley

BY BJNOft GOODMAN, POLITICAL CORRESPONDENT

MRS THATCHER last night
sought international and
domestic support for a battle
to retake Port Stanley, which
she appeared , to think was now
almost inevitable.

She also made it clear that
In the long term she would be
looking to other nations to par-
ticipate in some multinational
peacekeeping force.

Respite

Harriers reinforce Army for attack

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Standard Grade
. London
i Cash Price

BY BRIDGET BLOOM, DEFENCE CORRESPONDENT

MAJOR REINFORCEMENTS of f } ' . — j

Harrier jump jets have arrived | /

in the Falklands as British I j
troops prepare for the final I
battle to take Port Stanley, the Vy "SsiP
, island’s capital. f

The Defence Ministry in mcxjvt?

London -continued its official . ^
blackout of news yesterday on iqffRHijpi tSWP

fighting • in the Port Stanley

It seems clear that by Tucs- '
day British forces were in con- Ka fflaW)| |iSl6^i
•trol'of all the surrounding hills ■RSoSSTfSi
and key passes to the fawn and ^chulsjgeP;— ;

Were; ' within- 'te'asjr Striking w

distance.

1 Reporters with the British jnjSJSJ!

troops spoke of their artillery ^

already firing on Moody Brook, q y
the former Royal Marines base |f w S^ '

just west of Port Stanley. ' ■ — ■

The reports were released by ■ . . ™ .

the Ministry yesterday, but
were apparently filed from the
Falklands on Monday or P* 860 ior three 0
Tuesday. The Ministry of

It was not clear last night yesterday that boo
whether the Royal Marines and taiy installations i

* •* ■

ar ,*cs • • mount
IScJm lonodon

LOWS MSS . XBDrn

juaniU

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HA* IOUI '-^Ajport

In a series of television inter-
views for home and foreign con-
sumption, she repeatedly put
the responsibility for a poten-
tially “prolonged and difficult
battle" on Argentina.

The only way to avoid a battle
now, she Insisted, would be for
Argentina to withdraw. At one
point during the BBC interview
she appeared to be offering
Argentina a brief period of
respite. She said that if they
were going to withdraw, they
would have to decide to do so
•• within a few days.”

There could then “ be a
period of 10 to 14 days " for the
withdrawal to take place. But
it was clear from the other in-
erviews that she does not want
to encourage the Argentines to
think they can play for time,
and that she personally doubts
whether a battle can be avoided.

A diplomatic solution was
“just a possibility." hut she did
not think it very likely.

The interviews were the first
Mrs Thatcher has given since
Britain re-invaded the Falk-
lands. The tone suggested that
in some ways events since then
had hardened her views.

“I cannot myself see a role
in any way related fa
sovereign tv for the Argentines
on the Falklands. You saw what
happened in Goose Green and
Darwin and how our people

have been treated. They never
wanted to go to the Argentine
before. They will be even less
likely now."

Nevertheless, Mrs Thatcher
showed a new willingness to
consider some international for-
mula for solving the dispute in
the long term and raised the
possibility of a multinational
peacekeeping force. She made
the comparison with the Sinai
peacekeeping force and said she
hoped the Americans would
agree to take part if asked.

Mrs Thatcher was endorsing
a solution which Mr Frauds
Pym, the Foreign Secretary, is
believed to favour. But she
made it dear that the Govern-
ment is already considering
ways of maintaining a presence
on the islands for several years
lo come.

Once the Argentines had been
removed, the next stage would
be a period of “reconstruction
and rehabilitation.” ■ Mrs
Thatcher had already asked
Lord Shackleton to update his
1976 report on ways of making
the islands more viable.

‘Betrayal’

Ultimately the aim would he
“ self-government and inde-
pendence.”

In all five interviews, the
Prime Minister stressed the
need to protect “ liberty, justice
and democracy". Asked about
the need to be magnanimous
towards the Argentines, she
said magnanimity was not a
word she would use in connec-
tion with the Falklands. Some
people were using it to suggest
that Britain should hand over
something to the Argentines. To
do that to an “invader and
aggressor and fascist dictator
would be treason or betrayal
of our own people.”

$7 50m SUPPORT FOR POUND

Briefly .....

Laboupcont rolled .Nottingham-
shire Council voted to; give
£1,000 to CND.

Five home-made petrol bombs
.exploded under -cars belonging
to U,S. military staff in Athens.

An American woman being held
by China, accused of espionage,
will be released today, and,
ordered from the country.

1982 .J

Metal Exchange fallowing
speculative selling. Page 30.

• LOCAL AUTHORITIES in
England and Wales took over
£200m out of their balances to
keep down the 1982-83 rates.
Page 9 .

• BANK LEUM1 British sub-
sidiary of Israel’s biggest bank,
is providing money dispensing
for its customers - linked to
Lloyd’s Bank Cashpoint

• STRIKES and demonstra-
tions erupted across Italy
yesterday in protest at the
decision of the employers'
association • to withdraw from
the scala mobile. Page 2

• NATIONAL MUTUAL Life
Association, of - Australasia has
purchased for A$136.8m
(£80:5m) the bulk of Bond Cor-
poration’s shareholding in a big
Australian oil and natural gas
project Back Page

• MINING FINANCE company
Charier Consolidated’s £64m bid.
for Glasgow-based mining
equipment- manufacturer, And-
erson Strathclyde, is • being
referred lo ' the Monopolies*
Commission. Back Page.

• DE LA RUE, tibe security
printers, suffered a fall in. tax-
able profits to £21.94m for the
year to March 31 against £33 m.
Page 24; Lex Back rage.

•. HARRISONS AND CROS-
FIELD finished 1981 with tax-
able profits ' down to £47-24m
(£51, 02m) despite higher turnr
overL' Page 26; Ler, Back Page

6. ALUED-LYONS,. the food
and drinks -group, made taxable
profits for the -52 weeks to
March ' 6 of -£141.2m against
:£112.4m for. -the preceding 53
weeks. Page 24;. Lex, Baek Page.

paratroopers had already moved
for .the expected assault on . Port
Stanley, or were still eonsolidal-
; ing positions.

On Tuesday . it was being

suggested in Whitehall that a
full-scale attack would not. 'take
place for three or four days.

The Ministry of Defence said
yesterday that bombing of mili-
tary installations in and round
the airfield at Port Stanley was
a feature of the past few days,
and that in one attack two
Harrier jump jets were
damaged.

The two fighter-bombers
ditched when they returned to
the Task Force, -the Ministry
saicL The pilots were rescued.
Eight Harriers have been lost
since the beginning of the
campaign.

Further reinforcements of
RAF Harriers arrived in the
Falklands earlier this week, the
Ministry said.

They are in addition to the
20 original Sea Harriers with
the Task Force, and about 20,
mainly RAF Harriers, which
arrived two weeks ago.

It is unofficially suggested that
there may be 20 or more in the
new batch, making a possible
total of 60 of the vertical take-
off and landing fighters which
have been dedicated to the
Continued on Bark Page

The Batik of England appears
to have spent about $750m of
the UK's reserves to support
the pound since the Falkland
crisis began in early April,
writes Max Wilkinson. Eco-
nomics Correspondent.

Official figures show that
the. underlying fall in the
reserves last month was 5363m
after an underlying fall of
5394 in April. These figures
give the nearest Indication of
Bank intervention. Details
of foreign exchange market
operations are not disclosed.

The indications are that (he
Bank intervened quite sbarply

on April 5 to steady the
markets after the first news of
the Argentine invasion of the
Falkland Islands and that the
pound has been helped on
several occasions * when the
Bank of England index of its
value against a basket of
other currencies appeared to
sag to around 88 (1975=100).
Yesterday, however, sterling
maintained its recent steadi-
ness to close in London at
90.7, 0.2 points higher than
Tuesday's dose.

The reserves at the end of
May stood at S17.82hn
(£9.94hn) compared with
818.16bn at the end of April.

Record Canadian Eurobond issue

BY AUN FRIEDMAN IN LONDON AND JIM RUSK IN- OTTO WA

THE GOVERNMENT of Canada
yesterday launched the largest
single Eurobond in the market’s
20-year ! history, a U.S.$750m
(£418m). five-year Eurodollar
issue managed by Deutsche
Bank and Credit Suisse First
Boston. .

The money is being raised to
replenish' Canada’s declining
foreign exchange reserves and
to continue the defence of the
Canadian dollar in currency
markets.. Canada’s total gold and
foreign currency reserves fell
U.S.$651m in May to reach
|2.87bn. •

The underiying decline was
$951ra.- however, because tbe
Government borrowed. $300ra
from a group of Canadian banks.
The loan, from a 53bn standby
credit, was used to help defend
the Canadian doHar, which has
been in trouble for weeks.

Canada has healthy merchan-
dise trade surpluses, but the
deficit on its current account
has oohtVmed to grow because
of payments on services and on
service debt In addition, the

CANADIAN

RESERVES

8 5 [Cents perUSS-

.CANADtAN DOLLAR > .

Aoarat the US Ocfbr

79 I-- -I I 1 1-J

7S J F ill A M J
1982

estimates of revenue in the 1982
budget have been put out badly
by the decline of the world oil
price which is .cutting into
expected oil revenue.

Yesterday, the appearance of
the 5750m Eurobond helped the
Canadian dollar recover
slightly. Dealers were encour-
aged by the inflow of foreign
oxchange resulting from the
bond issue and ibe Canadian

— - CONTENTS —

currency closed in London at
80.3 U.S. cents against 80.1
cents on Tuesday.

Canada's total outstanding
public sector debt in foreign
currencies — federal, provincial
and municipal— 4s about
U.S.536.2bn. according to the
Bank of Canada. The Govern-
ment's 1982 total cash require-
ment was thought. lo be C$6.6bn
a few months ago, but this
estimate has been doubled by
many analysts and government
officials.

The Canadian issue received
a mixed reception in the Euro-
Contlnued on Back Page
Economic Viewpoint, Page 23
Eurobond prices hit by
Canada’s issue. Page 27 ■
Money Markets, Page 40 ’

£ in New York

Spot |51 .7880-7893 S1.7839.786S
1 month 'o.1 9-0.23 pm 0.25-0.21 pm
J monthsl0.60-0.67 pml 0.57 0.62 pm
12 months .2.20-2.35 pm) 1.95-2.05 pm

Miller Buddey Developments Ltd

ST GEORGES HOUSE

CHIEF PRICE CHANGES YESTERDAY

(Prices in pence unless otherwise indicated)

Oppcnbeinter ■ takeover: Mercantile’s

£91m gamble 22

Economic viewpoint: stabilising tbe

world’s money 23

Technology: machine tool research is

alive and well 12

Management: design as a potent

chemical weapon 13

Business law: privilege for EEC
lawyers 15'-

Jobs column: selfrportraits of student

candidates 18

Editorial - comment: President Reagan;.

Comecon credit debate 22

Lombard: Hugh O’Shaughnesgy on

Argentina and its generals 23

Noise in industry: removing the ‘ occu-
pational hazard * of.deafness 31

Survey: World Shipping 33-38

RISES

Boot' (H.) ' 2SO m f 7.

Coni. Microwave ...423 + 18

Dtiohill (A.) 375 + 7

Glaxo -693 + f

Kea dicut - 20 H" 2

-FALLS...,-.

Adams & Gibbon... 103 13

De La Rue 540 --40

Edinburgh. Gen. Ins. 8 -r 3 ■
Harrison, - Crosfield 562 — 7a

Hemokinetics

Johnson Grp- CJnrs.

Lake & Elliot

Piezo FJ1. Products
Saatchi & Saatchi...

Sotheby PJ5

Thorn EMI

Tilbury Group

Shell Transport

Anglo Am. Gold ...
Gold Fields of SA.
President Brand ...

5’- 3

24S" - 10

44 6

45 -15
435-20
307 -8
410 - 5
488 - 7 .
422 -4
£29 1- 13
■£23 - 13
£113- IS

Amarican News ...

7

FT Actuaries

39

Money Markets ...

40

Labour

11

Appointments

39

Foreign Exchanges

40

Overseas News

3

Unit Trusts;

15-20

Gold Markets

30

■ Partianwirt

Authorised

40

-27-29

IS

41

Base Rates

. 31

Jobs Column

18

Share Information 42, 43

Weather

44

Commodities

30

Leader Page

22

Stock Markets:

World Trade News

e

Companies UK ...

24-Zfi

Letters

23

London

39

Crossword

21

Lex

44

Wall Street

32

ANNUAL STATEMENTS

Economic Ind

11

23

- Bourses

32

Asa. Brit, roods . .

28

Entertain. Guide ...

21

London Options — ■

25‘

Technology

12

Davies ft Newman

24

European News ...

2

Management

13

TV end Radio

15

De La Rue

s

Euro Options

25

Men and Matters .

22-

UK News: '

H'aon & Crosdold

24

Euromarkets

Z7

Mining

25

General

8-10

Porter Chadbum ...

28

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OVERSEAS NEWS

pec

Telephone: 063281

sweep Italy in protest at pay move

North BritisHwwELL in roke

-

Luciano Lama: “no truce’*

Labour’s
hopes ride
on Dutch
local polls

By Walter Bits in Amsterdam

A HIGH TURNOUT of voters
in Amsterdam and Rotterdam
may have helped the Dutch
Labour Party cut its expected
losses in the country’s
municipal elections.

Even so, the party is still
thought to have fared bady.
Labour, under the leadership
of Mr Joop den Uyl, has been
forecast to lose as much as
10 per cent of its normal
* support

Such a result would confirm the
trend begun in the provincial
elections in March and would
further strengthen the hopes

- of the Christian Democrats
and the Liberals for a centre-
-ieht Government following
this autumn’s general
election.

Interest also focused last night
on the position of Democrats
66, a left-of-centre grouping !
currently forming part of the
interim minority Government
of Mr Dries van Agt.

It is generally felt now that
Democrats 66, which has 17
seats in Parliament, is in
decline, and a poor showing
in the municipal elections

' would again give rise to
optimism on the right.

The most likely result is solid
gains for the Liberals, a slight
advance by the Christian
Democrats and medium-to-
heavy losses by Democrats- 4>B
and Labour.

A high poll in Amsterdam and
Rotterdam could mean that
Labour will continue to be
involved in the government
of the country’s two largest
cities.

This is important for the party,
but the leadership will be
even more concerned about
the total vote received and
about tiie loyalty of its tradi-
tional working-class con-
stituency.

Mr . den ■ Uyl has indicated
recently that he might be
prepared to step down from
the Labour leadership which
be has held since 1967. A
poor performance by his party
in the municipal elections
might edge him closer to a
decision.

STRIKES AND demonstrations
erupted, across Italy yesterday
in protest at the decision of
the employers’ association,
Coofindustria, to withdraw from
the country’s wage indexation
agreement

Union leaders were claiming
last night that their strike call
had been a resounding success.
The disruption took the form of
a one-hour general strike,
coupled with four-hour stop-
pages at all companies affiliated
to Conffindustria.

Hie three main labour unions
were reporting 8(150 per cent
participation in the strike, and
were freely comparing yester-
day's mood with that during
Italy's famous “hot autumn”
of labour unrest in 1969, which
masked the end of the coun-
try’s- postwar economic boom.

Among the big groups, Pirelli
reported that nearly all workers
at its large Bicocca plant in

Milan had taken, part.. Plat
. claimed, that half its workers at
the giant Mirafiori plant in
Turin had stopped work, and
70 per cent at the traditionally
militant Lancia plant at
' ChivasBO.

Hie unions are meeting to-
day to plot the next moves in
their campaign to force Con-
find ustria to bade down. Sig
Luciano Lama, head of the
Communist - dominated CGIL
union, declared that until it did,
there would be M no truce ” on
the industrial front in Italy.

Sig Michele di Giesi, the
Labour Minister, meanwhile was
holding talks with Sig Giovanni
Spadolini, the Prime Minister,
and representatives of
Coofindustria. in a first attempt
“to defuse the bomb,” as he
put it, and find an agreement
that satisfied both sides.

Political leaders have been
almost at one in criticising

Confindustria. _ and expressing
alarm at the risk of a'protracted
wave of industrial agitation,
especially if other trade and
economic organisations . also
pull out of the scala mobile
arrangements.

The fact that the decision
does not take effect until
January 31, 1983 means that
the contending parties have
eight months to find a com-
promise. But the related issue
of negotiations for new three-
year wage contracts for 10m
workers, which have still not
begun in earnest, makes a
tense situation even more so.

Nor do the omens bode wen
for Sig Spadolini, who is com-
mitted to key talks on the future
of his fragile 11-month-old
Government as soon -as the
Versailles summit and an im-
portant round of local elections
this weekend are out of. the
way.

Confindustria has been at
pains to stress that Its move was !
in no way political But there is
widespread talk once more that
the Government’s .demise could
be hastened indirectly by the
latest turn in events:

Sig Spadolini received, one
small crumb of comfort yester-
day with the news that inflation
is continuing to decline. A rife
of only 1.1 per cent in retail
prices in May has brought the
year-on-year rate down to 15.2
per cent the lowest figure for
close bn three years.

However, Sig Nino Andreatta,
the Treasury Minister; yester-
day confirmed that the' govern-
ment deficit was running far in
excess of the L50,000bn
(£2L7bn) ceiling for the Whole
year originally intended. Sig
Spadolini has indicated that
emergency measures will be
taken very shortly.

W. German unemployment figure falls again

BY JAMS BUCHAN IN BONN

UNEMPLOYMENT In West
Germany fettl again last month
to 1.65m but the Federal
Labour Office warned yesterday
that seasonal influences had
merely masked the fact there
was no real improvement.

The number of unemployed
in May was 3.8 per emit or
some 64,000 lower than in
April. This represents some 65
per cent of the workforce,
against 75 per cent in April
and under 5 per cent in May
last year. .

Herr Josef Stingfl, the presi-

dent of the Labour Office, said,
however, that the unemploy-
ment figures, stripped of the
seasonal influences on employ-
ment out-of-doors or oh cater-
ing, represented a structural
deterioration of some 50,000
jobs to l-8m unemployed. Hie
level of job openings at the end
Of May was 120,200,

In these conditions, Herr
Egon Lutz, a Social Democrat
labour expert, warned of the
real danger of unemployment
exceeding 2m next winter. At
.the very least, the financial
difficulties of the Labour Office

are expected to be -aggravated,
with Herr Stingi expecting to
need additional budget funds
of ip to DM5bn (£1.2bn) to
cover unemployment payments.

Better news came yesterday
from the Federal ' Statistical
Office which has revised sharply
upwards its figure for manufac-
turing industry output for
March. On a seasonally adjusted
basis, output showed a rise of
2 per cent over February —
rather than an expected fall of
1 per cent This gives a quar-
terly result with the first sign
of life after 18 months of stag-

nation. According to pre-
liminary returns from the office,
the figures for. output in April
are likely to continue the
positive trend.

• Herr Heinz Kluncker, chair- ,
mail of the powerful public |
service trade union, resigned
yesterday from Ms post for
' reasons of bad health. Herr
Kluncker (57), had just led his
union, which has more than
lm members in public service
and transport, to victory in a
bitter struggle against a govern-
ment plan for a 1 per cent cut
in civil servants’ incomes.

Turkey may Jobless and inflation put Spam’s
betaken . , . ,

to court economic programme at risk

By John Wyles in Copenhagen

FIVE EUROPEAN Govern-
ments looke likely to stop up
the political pressure on Tur-
key’s military government by
making a formal complaint
against k to the European Com-
mission on Human Rights at
Strasbourg.

Legal experts from Denmark,
France, the Netherlands, Nor-
way and Sweden are meeting in
Oslo over the next few days to
put the finishing touches to a
dossier of accusations, including-
imprisonment without trial and
the widespread use of torture.

Mr IsjeH CHesen, theJDanish
Foreign Minister, „saM iere^es-
terday that tite five countries'
would decide in about two weeks
whether to lodge .their joint ■
complaint There had been no
pressure from the UJS. to drop
their action although Washing-
ton has made no secret of its
wish that Ankara should be left
alone to pursue its plans for a
gradual restoration of demo-
cracy.

If, as seems likely, the five
do go. 3head, then Turkey may
immediately respond by with-
drawing from the Council of
Europe

The case, however, could take
two years -to reach 'a conclusiOtT
during which' time Turkey
should be well on the way to a
restoration of democracy if the
military regime sticks to its de-
clared timetable.

BY ROBERT GRAHAM IN MADRID

RISING INFLATION and a
continuing increase in the level
of unemployment to more than
15 per cent of the active popula-
tion are undermining the
Spanish Government’s economic
plans. These plans are based
on a social contract between
the Government, the employers
and the unions and this pact,
too, is now at risk.

The broad lines of policy for
this year were that the inflation
rate would be cut to 12 per cent,
l wages would be held to a SM.1
per cent band, and the number
of unemployed, would be. con-
stant, with the- Government
guaranteeing 350,000 hew jobs.
These overall .'aims 'Were also
the basis of :the recently
published conclusions in the
OECD’s annual report on Spain.

In the first five months of the
year, however, the only element
that apears to be going as
planned concerns wages. The
average for private sector wage
settlements Is just above 10-5
per cent, so keeping within the
outer limits of the band. This
has been possible because the
unions have respected the limits
imposed Here, the moderation
of the Socialist - controlled
General Workers Union: CU.GTJ,
has been important

Against this, - inflation has
been running much higher than
expected The latest figures just
released . for April show a L3

per cent increase over the pre-
vious month, giving a year-on-
yea r rate of more than 14 per
cent This is almost the same
level as last year and underlines
the enormous difficulty the
authorities have encountered In
the past five years in bringing
Spanish inflation into direct
tine with that in the main OECD
countries.

This year’s increases are
attributed to generous farm sup-
port price settlements ‘ and
higher foodstuff imports due to
the drought The decline in tire
value of _ the peseta has been
! dffset'by the" StidrihsaQM'oroil
prices... ■: - *

Another important inflation-
ary element, which has been
highlighted by the business com-
munity, is the sharp increase' in
■public sector spending.

During the first four months
of the year, the treasury’s resort
to the Bank of Spain has
totalled Pta 520bn (£2£bn).

This is more than the budget
envisaged for the whole of 1932.
During the same period last
year, advances by tiie Bank of
Spain to the Treasury totalled
PtaS20bn (fl.Tbn) and, as an
indicator, reached Pta 575bn
(f 3-lbn) for the year as a whole.

The increase in public sector .
spending is also underlined by
a rise in the money supply
which is running at a yearly
average of 17 per cent, two

points higher than the previous
year. If the first six months’ in-
flation figures continue like
this, the Government will be
obliged to top up wages, as
agreed in the social contract i
Economists believe the Govern-
ment is most likely to resort to
holding back price increases
artificially until July, as hap-
pened last year.

. Perhaps more serious, from
a paLitoco-eoonomic point of
view, is the rise of unemploy-
ment In the first quarter, un-
employment rose from L74m
to LSm,, with 15fl pm- cent, of
the '! jobless!'

The figure "is. expected to rise
hi the second quarter to mare
than 2m and is probably al-
ready past this mark.

Hie increase in jobless is in
stark contrast to one of the
principal undertakings in the
social contract Hie unions, in
return for accepting a nt in
real wages were promised —
albeit in vague terms— that un-
employment would not in-
crease because 350,000 jots
would be created this year.

This promise now appears
wildly optimistic and could
cause serious, discontent within
the union movement with criti-
cism of bad faith" levelled
against both the ^ Government
and the employers. It will also
make it more difficult to ar-
range a wages pact' for 1983.

Mitterrand
call to
revive
economies

By BriJ Khindaria in Geneva.

THE WORLD’S 115m young
people without work can "be
saved from striking further
into the “quicksand of un-
employment n only if the
major powers put aside their

narrow national interests to

revive the world economy.
President Francois Mitter-
rand, of France, said here
yesterday.

Addressing the 147-nation

conference of the
International Labour Organi-
sation, M Mitterrand repeated
his call for “ European space,”
comprising at least the EEC
countries, where workers
would be guaranteed jobs.

He- rejected the UJS*. thesis
that market forces should .be .
relied upon to boost economic
growth and create jobs. Euro-
peans should spend ' much
more on social policies, train-
ing workers to handle new
technology, and on protecting
those who work in multi-
national companies ■ against
decisions taken toy head-
quarters located abroad.

The best way to handle
problems created by unavoid-
able redundancies is to
establish committees . of
worker, emloyer and govern-
ment representatives on the
pattern began by his
Socialist Government in
France.

The President repeatedly
emphasised themes he is ex-
pected to raise at the seven-
nation summit of the world’s
main industrialised countries .
which hegips at Versailles tin .
morrow.

He called for significant
reforms to the world’s mone- -
tary financial systems to
eoMre that national policies
do not conflict with tiie needs
of industrialised . countries
as a whole, causing recession
and unemployment.

Further social unrest in
both rich and poor coun-
tries, he said, could be pre-
vented only through dose
policy co-operation among in-
dustrialised nations to man-
age economic recovery.

Protectionism In trade and
cats in aid to developing
countries would hurt Euro-
peans in the long run by
slowing down the Third World
growth as a market for
goods. Including technology,
he added.-

M Mitterrand’s address
opened the conference’s three-
week section and set the tone
of debates to come. The Tnatn
Druposal^liefQje?flele§ate&, Is
for Vnew interhaflonaj^on- -
vehtioh' laying" dawn guide- ;
lines ", for ' employers '■ .When
dismissing workers or announ-
cing redundancies. The U.S. ,
and - Britain would prefer a i
recommendation whieh does
not have the force of a treaty
and is obeyed on a voluntary
basis.

The other conference high-
light will be an address by
Pope John Paul n on May 15
on his return from Argentina.
He Is expected to appeal for
more social justice and free-
dom for workers wishing to
create trade unions. •

Iraqi air force

warns

BY aORfORHGN STfcfF.

IRAQI air force jets broke, the
sound barrier over, Tehran and
the holy city of Qom yesterday
in what was seen as a dear
warning .to"' Iran not to attempt;
an-iflvasioii’Of

A military spokesman- in.
Baghdad -said tire flights- demon- .
strated Iraq^jahility.*’ toJreach.
out. to any "target in Iran”'.:.

“ Thjs -.warning, is aimed at.
deterring the Iranian authorities'
from shelling anew any city or,
civilian installations in Iraq,”
he said.' ; -T ' ‘ .

The southern Iraqi town of
Basra.- -on .. the. -Shat$ al-Arab -
waterivay has been shelled sev-.
eral times since Iran recaptured
the nearby porf oty of Khoresm- ~
sfiahr 10 days ago- - - - ■ - -
..This prompted Iraq to launch
air attacks last -.weekend on. the
main Iranian oil. export term-
inal at Khaig Island. Although
there have .been ho .confirmed ;
reports of damage, Japanese
shipping- companies said yester-
day that they ' bad suspended
their services from the terminal.
Oil. company officials said they
believed, that damage had been
slight. • . . -

A further posable escalation
of the 20-month old Gulf war
came with an' alleged warning

"to Kuwait' that vessels approach-
ing that"' country might be
stopped and searched by I ranian
warships.

The ; Kuwait newspaper Al-
Anfcaa , said that the Kuwait
.. Chamber of Commerce had been
." told by Mr Ali Shams Ardakani,
the Iranian ambassador, that
local, businessmen should stop
using nje term “Arabian Gulf ”
. in their shipping .and import
documents". ' . .

A spokesman lor the chamber
' said it had been told that vessels
-heading for Kuwait would be
, intercepted, if they did not abide

■ by- the stipulation and would
-risk not being allowed to con-
-tmue to their destination:

■ Kuwait had no intention of
giving in to the Iranian threat
and complained that it had. not
been delivered through proper
diplomatic channels,

- - -ffan, meanwhile, conceded
that -Iraqi aircraft had flown :
over Tehran and Qom but said
that no bombs bad been dropped
or targets attacked. A govern-
ment spokesman said . that
Iranian jets had been scrambled
tordrive off the enemy aircraft

This is the first time- in more
than a year that Iraqi aircraft
have. ranged so deeply into Iran.

MILITARY AID TO IRAQ CONTINUES

Egypt sees a way back
to the Arab world

BY ANTHONY MeDERMOTT IN CAIRO

FOR THE. first time in -decades,
the one issue now dominating
Egyptian foreign policy is: not
Israel and the Palestinians.
Egyptian attention is concen-
trated instead on the Gulf and
on the country which led the
Arab boycott of Cairo after
President Anwar Sadat’s peace
overture to. the Jewish state.

In November, 1978, Iraq
played host to an Arab summit
which drew up a comprehensive
programme to boycott .Egypt
after its Gamp David - accords
with Israel. Today, Egypt’s
supply- of arms to Iraq, whose
Government, has- recently.- sug-
gested direct, military Interven-
tion- might- -be welcome- in. the
face of a humiliating defeat
. by Iran in ifce Gulf war, could

Solidarity looks poised to issue general strike call

BY CHRISTOPHER BOBIN5KI IN WARSAW

SOLniARTTY’S clandestine
leadership in Warsaw has urged
its supporters to sue pend pre-
sent forms of protest against
martial law— but it appears,
nevertheless, to be moving to-
wards calling a general strike.

In a statement published in
the underground press, the
four-man Warsaw region leader-
ship says that some Warsaw fac-
tories have said that a date must
be fixed for a general strike
which would force the authori-
ties to negotiate with the union.

The statement bears the hall-
marks of a compromise between
the clandestine radicals, who
are arguing for a confrontation
with the authorities and the
moderates, like Mr Zbigniew
Bujak, the Warsaw region
leader, who are inclined to take
a long-term view.

It admits that present forms
of protest like lighting candles
in windows to commemorate
the introduction of martial law
and short protest strikes have
not produced results.

But the statement says that
. the May 13 strike call for a
15-minute stoppage was heeded
by 70 to 80 per cent of the fac-
tories in the Warsaw, area.

In light of the request that
the regional leadership . fii a
date for a general -strike, the
statement calls .on union sup-
porters in each factory to set
up “ cells ” to prepare the stop-
page.

These would sound out sup-
port on the shop-floor for such
a stoppage, and the forms It

should take.

More tight is shed on the dif-
ferences Of opinion inside the
movement by extracts from a
letter sent by Mr Bujak on May
l\ to Mr Bogdan Lis,- the union
leader in Gdansk, which was
published in the Mazowsze clan-
destine weekly.

Mr Lis had said that factories
hr Gdansk' were behind a
general strike.

Mr Bujak says that such a
strike would be an attempt to
overthrow the Government —

revolution, no less.

• “ I personally will not be the
one to call for such a strike. -It
would mean sending thousands
of people to their deaths, and
I don't want to be responsible
for that,” Mr Bujak says.

But he does suggest that fac-
tory activists should tell the
■national leadership what they
think and then, if over 80 per
cent of the large plants back
the strike, the four-man leader-
ship would be “ ready to- sup-
port the call for such a strike.”

<#- V "

^ 7 I

* • I

> •' *

«># -

M Mitterrand . . plea for

jobs guarantee

the -parref 'ttc'

. 7rfae_ Gulf war has' certainly;
thrown up ;• seme -strange
alliances,' so that compared with
Israeli arms, applies to ..Iran,
Egypt's’ to Iraq should hot-
appear so illogical. The fact
is. that in spite, of the Arab
boycott, iMq.begto ttirtting to
Egypt for arms fairly soon after
the conflict began, in Sep-
tember, 1980. The late Presi-
dent Sadat made it public the
following March. Today Httle
is hidden, Iraqi: military air-
craft can be seen, at : Cairo'
airport and civilian flights
between Cairo - and . Baghdad
resumed last mwflLr.

Over The past fwo:_xeare;
weapons worth around - $L5bn-
have been delivered to Iraq" and
paid for. Ostensibly, these pay-,
mems have come directly from-
Baghdad. It is more likely, but ^
hard to check, that they repre-
sent Saudi and Kuwaiti money
in ; support of Iraq’s war,
channelled through Baghdad to .
. preserve the fiction. Thus^-after
a break of nearly four years.
Government : money “from the ■
Arabian peninsula- is- indirectly
finding its way back to Cairo. •

; ‘Thejarms factories in Helwan -
and 'Hetippolis have .been kept
busy through- these r -contracts,
particularly for the .production -
of ammunitibiifridnes ahd-spare
parts ' for : -Soviet aircraft. :.Of. '
heavier articles, between 40. and .
50 T-55 1 . Soviet-built tanks have,
.‘been ^potted on “ a vessel lii
Alexandria, and it is -assumed
that these are heading for Iraq._
With the delivery of U^-M-fifr

, tanks, Egypt has a tank surplus
[ but it is reckoned that total
: sales would not exceed 1007

It is unlikely that Egypt

- would have supplied aircraft to
Iraq. In spite of gradual de-

* liveries of U.S. and European
' aircraft, . Egypt seeds every
fighter and bomber it has, how-
ever ancient Sending pilots
would also seem unlikely, even
though the Lebanese weekly
An-Nahar- Report and Memo re-
cently reported that between 40
and 60 -Egyptian pilots were in
-Iraq.

■' Ground troops cobid be a dif-
ferent issue; because there are
about 30,000 Egyptians working
— in- Iraq; rsonie of - vriiom ; wuH
have been seconded, much as
„ British • servicemen- havp^ieen

too

;=th^.~Egjrptisffl air defence- ex-

_^perfshaved)eetf helping facsach

- states. as^Bahrein. . ; ^

- ' Presidsnt " Hasrii Mubarak
this Week raffed upon 'Iran- and
Iraq to- stop fighting. He 'was
backed tip by President . Janfar
Nimeiri of Sudan "in a, one-day
visit on Tuesday, who said he
had called, a . summit to discuss
the war and that Egypt should
attend: Such a summit would
exclude countries tifep Algeria,
Libya. Syria and South Yemen
and the Palestine Liberation -
Organisation,: the Steadtfast-
ness -Front most . in . opposition
.to. Egypt's peace treaty with
Israel. . • V

Egypt ■ appears to Lhave
ralculated - -that • while.; there
..ctiuld be difficu l t ies in becoming •
'Involved, in a complicated
Middle East political conflict at
a • time when security ; and
economic problems at home are
. still the. priority, these are out-
.'weighed by several factors^:

The first is that Iran’s victory

- opens the way to a . change of
Government in Iraq,; v Which
coifld produce an axis composed
of Syria, Iraq and Irani- - TOs
would, radically change r the
balance of power in the eastern
-part of the, region and afibuld
worry the"- States on - the
Arabian -peninsula deeply.— '

- - -Second, although Egyptls in

no harry to rejoin ; the 3irab
world as a whole, if, as theronly
'credible counter balance. toTthis
■axis, Egypt could offer support
(even military support J,:then
the moderate Arab States would
lobby for its partial returo-to
the Arab -fold. - -

Portugal’s EEC deadline threatened by badly-prepared homework

BY DIANA SMITH IN LISBON

“WE DIDN’T apply to join
Portugal. Portugal applied to
join us," said M Gaston Thorn,
president of the EEC Commis-
sion, while on a visit to Lisbon.
In case the message had not
sunk in, he added that if
Portugal hoped to get into the
European Economic Community
by January 1 1984 “ a great deal
of work must be done, ” by the
Community as well as Portugal,
M Thorn stressed. It was clear,
however, that the pith of his
. remarks .was intended for
Portugal's negotiators.

For this is the crucial year. If
Portugal does not put its best
efforts into preparing the
toughest dossiers on the agenda
for June and October— customs
union, agriculture, fishing,
taxation, right of establishment
and social affairs, most
importantly, labour movements
—it may miss the chance to sign
its accession treaty by the end
of 1982.

That would be a serious
psychological blow for " the
Balsemao Government, which is
visibly anxious to have negotia-
tions over and done with before

the year ends. Hie blow for the
EEC, which has only a brief lull
in its budget wrangles with the
UK between now and November,
would be less painful. In times
of Community crisis, candidates
have to press their cases even
more effectively.

It is not clear whether
Portuguese officialdom has
absorbed the message M Thorn
delivered during his April visit
to Lisbon, or the polite hints
dropped sotto voce that Spain
is getting on with better-pre-
pared dossiers— so what about
a show of Portuguese energy?

— Portugal does not present the
threat to many Community pro-
ducts that makes some members
of the Ten fear Spanish acces-
sion. Nevertheless, It has
serious shortfalls in some areas
and two strongly competitive
and. politically sensitive

domains: her textiles .and her
manpower.

Textiles represent 42 per cent
of Portugal's industrial output:
since the expiry of the volun-
tary restraints agreements this
year, they have been able to

enter the Community freely.
Portuguese officials get jumpy
when warned that the UK and
France, whose textile industries
are in difficulties, could insist
on a post-accession transition
period of perhaps two to three
years when quotas would be en-
forced. There are signs that
the customs union dossier sche-
duled for the June ministerial
meeting may not be cleared be-
cause of the possibility of a
tough Portuguese stand against
any temporary derogations of
free circulation of goods.

Should this crucial dossier be
shelved, this wiH'affect the bulk'
of negotiations. The Community,
•presidency switches from Bel-
gium to Denmark cm July 1, a
point in Portugal’s favour, since
■the smaller nations tend to. be
more amenable to such candi-
dates.

But. thereafter comes -West
Germany’s presidency: a West
Germany with 7 per cent unem-
ployment, lm resident Turks
and, at this stage, while not
hostile to Portuguese textiles,
not cheered by the prospect of
rapid free circulation of Portu-

guese workers after accession.
There are more than 200,000
Portuguese in West Germany
at present and lm in France.

The gravity of the social
affairs/labour dossier cannot be

would be lifted gradually.
Portugal, still an exporter albeit
less massively than in the 1960s
and 1970s, considered the free
circulation of its considerable
surplus manpower as a prime

This is the crucial year for Portugal’s plans to •
join the EEC. If It does not put its best efforts
into preparing the toughest dossiers on • the
agenda for June and October it may izxiss the .
chance to sign its. accession treaty by the -end of -
1982: : - . •• -

stressed enough. The Portu-
guese blench' at the thought of
years of restrictions: many Com-
munity members do the same at
the thought .of a flow of Portu-
.guese .workers, swelling the
unskilledtsectpr of- the market.-

. Gree«r*to longer an exporter
of manlwxwer— had to bow to a
seven-year transition period
after accession in which restric-
tions on the circulation of Greek
workers in the Community

reason for-applying to join the
EEC— a hasty, politically, moti-
vated and economically -unpre-
pared gesture made in 1977.

Portuguese officials do not
want to consider the chance
that transition could be longer
and more restrictive fhayi that of
Greece, but the political pres-
sures exerted by the EEC's
heavy unemployment levels are
mit i g ating Portugal's hopes.
Whether this entails 7 to 10

years of transition" is. a. moot
point.

Textiles and labour encounter
lines of most resistance from the
Commu n ity, where 'Portugal’s
resentments strong but its bar-
bargaining power, less so. Mat-
ters like agriculture, regional
policy and fishing rights
require immense “Community
■benevolence and even greater
Portuguese preparation — wbicb
seems to be lacking.

. Despite rhetoric- and promises
of improvements, Portugal'is not
working' on its regtonai.'.paligyt
if it plays its cards right as
West Europe’s poorest .country,
Portugal can benefit greatly
from the European "Regional
Development Fund -and. other'
instruments ' destined to reduce
the gap between richer and
poorer regions.

.With this in mind- it is not
much to Portugal’s; credit that
the regional- dossier was briskly,
dosed early this year after next
to ho debate and .'that, since
then, there has been no con-
spicuous Portuguese effort to
structure a policy in time for
accession.

Hie same problems apply to
Portugal’s-, congenitally - weak
.agriculture; Much of .it’ still
'lurks in .the . pre-mechanical
„dark^. ages;; __ devoted to the
apparently, sacred principle of
qne : inaiwme eaw or one .mati-
cme cbrnrtalk, 'however iinprac-
"‘tical- • the;- economics of this-
* in&v[dualism.‘ ' The* Community
•/is'fi^lLvraiting for proposals on
^hetre to^'-apply'. the' .sizable
-chunk- of r the :100m. '.units of
^account" set aside -, .in . direct
"grants- for Portugnese.-agricui* •

~7 hirir». ■ - .. #

.^rThe \ coon try - is -importing

.‘per- cent of itss food ‘and' :
- animab 4 supplies 'this year, .
-thanks: .to. drought last" yeary.
..nnderrapStal^atiQn,- inefficiency
.'and -mtedflirvian , storage anC
•_ marketing systems,- The, EEC-
-could '^hardly ,be . blamed ■ for -
•ocrarional.'sfaows -of- bleakness-'
when asked what : it- plans to do-
' about 'Portugal’s - 'agriculture.
Since the Portuguese . appear
' not to 'know themselves! how in
; approach this truly daunting
-.subject, - the ~ bleakness ■' is *

mutual

The Portuguese seem to want

a long' restrictive period- of
transition to protect key- sectors
. like finance, from massive
•foreign .competition. They -want
. ; five . year* to adjust their
. hideously complex taxr system
to VAT— the EEC's breaA\and
hutter—axjtj three years of. "con-
trols - on .-capital movements
after . ‘accession. Capital move-
ments. --Controls.-, have -been
, received : with : understanding—
; the ."other hefiy request** 2iave
.been. ■ teas-. weH-accepted. -Jw
■ ..'.’Understanding” was^'toe
- ^keynote- when Portugal, ..ejneig--
^ingfrotn. revolutionary tuffitoil,
-made its J>id - for membership.
r But'"ffeere is "a feeling in tfceiair
-.-that -mkhvay: ‘through 1982 It
can noloriger 'refy on ike uuder-
..standing .af the Ten. Portugal
. nujst: he xnetbod&cal in Itg- work
;&s_ aossiers : or fact-the
delays -‘. rand' • disappointments
incurred bgr. less careful prepar-
ationi- ;. -: 7 v .

FWANCI^' IWEs! f pobnshad'f&tly
■xnpt Sundays a nd h olidays-" U.S.
■mbacripbon ratetr $365.00' Mr annum.
Second ClaSa pa wage pakf at- Naw
Yorfc,. N.Y.;_and n .additional mailing
centres.

? I :

» !>:*

3

Thursday June 3 1982

OVERSEAS NEWS

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A new industrial and Invest-
ment policy was announced
. yesterday by Bangladesh,
which virtually undoes a
* decade of nationalisation of
major Industries and; libera-
c' Uses the provisions for
zir foreign investment, AP-DJ-
reports from Dacca.

Mr S hafi nT -Azam, who is
adviser to the chief martial
V law administrator lncharge
;”■ . of industries and commerce,
^ said jute and textile Indus*.
---. tries formerly owned by
a_. . Bangladesh. . entrepreneurs
'■ will be, returned to them
shortly... ; About half of the
V jnte and tertUeindnstrles.will
Ar- Vhe.. returned to the private
- r sector, •

" Six .Sectors of basic indns-
.«. tries win be reserved for the
•pdblie. sector and will remain
■«■> closed to foreign investmenL

^Egypt considers
military requests

& Egypt i s considering a British.
,c> .' and French request for per-
*■••■ ’missfon ■ to' conduct military
> . exercises In the . Egyptian
desert. Field Marshal -Abdel
Halim Abu Ghazala, the
Egyptian.': Defence. Minister,
*- said yesterday. Reuter reports
— ■ from Cairo.'

C S.‘ African activist’s
banning; continnes

Dr Maraphela Bampbele, who
helped^ . found the • Black
_ Consciousness movement with
^ the., late" Steve Bibo, was
* banned- on Monday;, for a.
further two years, her family
said. AP reports from Johan-
nesburg. . ..

Df . ttamphele remains:
restricted to a rural township
220 miles north -of Johannes-
burg. ■ ' .

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U.S.‘genmne, v
says^ Noioma

Mr Sam NuJouia. leader of the
Sooth 'West Africa. People’s
Organisation (Swapo), which'
is fighting s guerrilla war for
independence in Namibia,
sa id aft er^ meeting Mr Chester
Crocker, -TLS: Assistant Secre-
tary of. State, in - Bohn, that
be now believed the U.S.
wanted a- speedy end to the
conflict' with South' Africa. He
also said he believed the U&
wanted 'genuine independence
'in ’Namibia; AP reports from
• Bonn. •.

Lee Bum-Suk

S. Korean
Foreign
Minister
removed

By •Ann Charters In Seoul.'

IN ANOTHER Cabinet change
just two weeks after a major
reshuffle. President' Chun Doo
Hwan has named chief Presi-
dential Secretary Lee Bum Snk
as Foreign Minister. .

Mr Lee, a career diplomat
who. has only been, a member
of the Presidential staff since
January and was- formerly
Minister- for National Unifica-
tion, replaces Mr Lho Shin-
Tong. -Hr Lho is believed to
have been removed because
Korea's request for $6bn in aid
from Japan & still pending
after -more than a year, despite
ministerial-level talks in Japan
and Korea.

Bilateral talks .on the aid
request broke off in April when
the- Japanese offered to discuss
$4bn in aid . and loans. Although
the new appointment may not
immediately lead to renewed
talks, Japan is reported to
welcome the change and Mr
Lee is said to he.weJQ regarded
in.Tokyo. - • _

Mr Lho wall remain active in
the Government and has been
named Director of the Agency
for National Security ’ Harming ,
the successor to the Korean
C^tbraS Intelligence Agency:

In ■■ .ahotiiw -development,
former Opposition politician
and Presidential contender. Mr
Kim Young-Sam has been placed'
under house arrest, following
statements published in the
New York- Times.

AP-DJ -adds from Seoul: the
Prosecutor-General's office has
indicated 28 people in connec-
tion .with the . Korean ' loan
scandal. Heading the; list were
Lee Chbl-Hui, one-time Deputy
Director Of the Korean C°ntri>f
Intelligence Agency, and. his
wife, Cbang -Yoaug-Ja.- ;

fears Versailles criticism over weak yen

BY CHAALES SMITH, PAR EAST EDITOR IN TOKYO

JAPANESE officials are afraid
that (he sudden weakening of
the yen during the past few
days- could result in Japan find*
ing itself the centre of critical:
attention at the Versailles -
economic summit this wcefc
despite the Gove rnm ent's
efforts to defnse criticism with:
its recent trade liberalisation
measures. •

- The yen has lost more than
10 points against the dollar
during the past two weeks and
would almost certainly have '
fallen further but for heavy
intervention by the Bank of
Japan.

In Tokyo yesterday the clos-
ing rate against the dollar was

■ Y244.65 — a drop pf.!hree.poinls.
on 'the day. Market turnover,
iias been at. record, or near
record, levels lor the past ,two
days and intervention by the
Bank .of Japan may have
totalled around $20 0m a day.

The governor of the Bank of
Japan, Mr HaruoMaekawa, told
foreign journalists early this"
week thatrthr yea's weakness
was due entirely to the external
factor of U;S. interest rates
< which have begun rising again
following the failure of talks
between the Administration and
Congress on ways to eliminate
the U.S. budget deficit).

Japanese officials, however,-
are well aware that there are

two . sides, to the. interest, rate
argument. Japan’s rates are the
lowest for any. major country',
and arguably deserve a share of
the blame for the outflow of
long-term capital which has
been the immediate cause of
the falling exchange 'rate.
.■''Officials in. Tokyo have re-
peatedly said that they will take
no action to widen the' present'
gap between Japanese and U.S.
interest rates, but they have
also argued that in the country's
present economic situation any
rise in interest rates is.. un-
thinkable. The reason for this
is that while interest rates have
been static for some time, real
interest rates (the difference

between nominal rates and in-
flation) have risen sharply with
the fading of inflationary pres,
sures. . '

Long-term real interest rates
which rose from 1.5 per cent in
March last year to 4.8 'per cent
early this year are said to have
added to the financial burdens
df industry at a. time of domestic
recession and to have become a
difficult . problem for small
companies:

Because .Of the burden of
real interest rates — and because
Japan believes it is obliged to
follow a rigid .fiscal policy to
restructure the budget, the
Bank of Japan sees no option
but to keep interest rates where

, they are, for the time being-
1 Some private critics of the
Government’s policies "believe,
’ however, that the central biink
' ,couM be forced' to raise interset
. rates even without pressure
from outside. Tins could happen
if the Japanese, capital market
proves, unable, to support the
very heavy burden of Govern-
ment bond issues that will be
made necessary by recent short-
falls in national -tax revenue.

Higher interest rates together
with' continuing — or even
increased— amounts of deficit
.financing in the form, of bonds
issues would represent a radical
change from the economic
policy the Government .is try-

ing to follow at present hut ft
could conceivably. • become
unavoidable. . ...

Japanese officials refer to a
■shift' away from the current
law interest rates and. tight
fiscal strategy as a change of
. Japan's economic “ policy mix.”
They fear that pressures for
such - a change might be
repeated at Versailles and that
they could become increasingly
hard to resist ✓

A radical change Of policy
might have political as well as
economic consequences for
Japan, since several key figures
in the Government are deeply
committed to the -current
strategy.

Tokyo plan to persuade loss-making petrol stations to close

BY RICHARD C HANSON IN TOKYO

JAPAN'S Ministry of Inter-
national Trade and Industry
(MTIT) has finally plucked up
the courage to tackle the. prob-
lem of Japan's 30,000 . super-
fluous petrol stations. The
ffimscry is expected to
announce proposals soon .which-
wdH offer every Incentive to
station owners either to merge
operations or to move into other
sectors.

and indirectly affect 67.000
people. Short of using force,
however, the Ministry appears
to have decided that something
must be dose.

. The MOT plan to rationalise
petrol stations by a policy of
persuasion goes hand in hand
with a . plan. .To. .reduce the
capacity .of .Japan’s overblown
oil refining industry by 17 per
cent — around lm .barrels a day.

Forcible closure of - loss-
making stations will be avoided
because of the large-scale un-
employment this would cause:
to put even 10 per cent of the
country's present total v of-
59,000 stations out of work
would create 24,000 unemployed

• Scrapping - oil- . refining
capacity, however, demands
little more than -the reluctant
agreement of the 13 major com-
-panies in the industry, Rational-
ising the distribution of petrol
will be far trickier as nearly
80 per cent of petrol station

owners are independents; over
30 per ce&t are one-man or one-
famtly businesses.

Japan bas-more than double
the number of ~ petrol stations
than either the UK of West Ger-
many, but only 50 per cent more
demand for petrol. This is
partly because a -large number
of people left the. land and
moved irrto the petrol trade in
the. 1950s and. 1960s — the num-
ber of- petrol stations increased
30 times between the beginning
of the 1950s - and -tbe mid-1960s.

It is also because ownership
of a gas stationhas always been
seen as a status symboL Petrol
station owners, in their heyday .
earned as much as salaried staff .
with top Japanese companies

and many times more than
humbler types of retailers, such
as greengrocers.

Today, however, 70 per cent
of petrol- stations operate at a
loss and most only stay in busi-
ness by making ' attractive
special offers to customers.
Many .•petrol . stations provide
a "free car wash after the
purchase of a gallon of
fuel. Others give out coupons,
which can be used to buy
several dozen different groceries
at local, stores at a- -flat rate of
Y10 (2Jp). Yet another idea is
giving customers a discount
every time a favourite baseball
•team wins.

The intense competition.

between them means Japanese
petrol stations are famous for
their service. At nearly all
petrol stations sales assistants
approach: at the double when a
car appears. Washing and
.wiping windows is considered
obligatory and vacuum cleaning
rugs is not unknown. -

Excess competition has also
had its effect on prices. The
cost of petrol has risen only 65
per cent since before the first
oil crisis to about Y750 (£1.74)
per -gallon, although station
owners and the oil companies
would prefer to see the price
ov er Y 9Q0 per gallon.

MOT, by -ordering cuts in
refining capacity; might be help-
ing to set the stage for price

increases. Among those who
will be squeezed by tighter
supplies are those stations not
affiliated with an oil company.
These stations have, at times,
spoilt attempts to raise prices.

MITTs major weapon for
reducing the number of'surplus
stations is expected to be the
offer of special loans from a
state-owned bank specialising in
small business finance to those
who consent to close. The
Ministry is being careful not to
sound over-confident about the
results of its programmes, how-
ever. A “ conservative esti-
mate ” is that in five years’ time
Japan might still have 95 per
cent of the petrol stations it feas
at present.

Gas dispute jeopardises future of Thailand’s fertiliser plant

BY JONATHAN SHARP IN BANGKOK

THE BUBBLE of euphoria felt
by Thai economic planners last
year, following the selection of
a Scandinavian consortium to
build a giant fertiliser complex,
has now been , depressingly
punctured. by a dispute over fuel
prices between the Government
and the consortium. The dead-
lock has Ted to speculation that
the Thai Government may throw
the project open again to in-
ternational bidding.

The speed with which the
Thai Government processed and
approved the offer made by the
"nsortinm of H aid or Topsoe of
tomark, Norsk Hydro of Nor-
\v and Swedyards Develop-
ment Corporation of Sweden
confounded the Government's
critics. Earlier, the. cynics had
scoffed at the abandonment of.

plans after six months of nego-
tiations with! a' U.S.-Japaiaese
group to construct the project.

The Scandinavian bid
appeared to be, set fair for siny
cess, however, nor- least because
the proposals included terms
that were unexpectedly
generous to tbe Thais.

• The -plant, costing up to ;
12,000m baht (£290m), would
be built on Thailand's ambUious--
eastern seaboard Jndustriaiisa-j
tion project, south-east ofi
Bangkok. It would use as feed-'
stock the bountiful supplies of
natural gas coming onstream
from the Gulf of Thailand.

The plant's output would
raise the relatively low level of
fertiliser used in Thailand. That. .
farmers "have long ■ recognised '
the benefits of fertiliser but'.

have been constrained by high
'costs from "applying” it to ■ the
same extent as their neighbours
in. other South-East Asian. coun-
tries. - ;; \ ..

- -The project-wobld also re-
duce Thailand’s heavy depen-
dence on imported fertiliser,
which last year cost more "than
3,000m baht (£73m).

Unfortunately, the planners'
high hopes are nowhere near
being realised. Deadlines for
signing the final contract, on
the deal at the end of 1981 and
in March this year have passed
and, while . negotiations have
continued, questions are begin-
ning to be raised as to. whether
the project will get off the
ground in its present "form.'

- Ironically, the main socking
point in .the talks Between Thai

officials and the Scandinavians
concerns the 'natural gas that
has been touted as the answer
Jo Thailand’s prayers.

- TSej -provisional .‘agreement
stipulated " tha t the completed
fertiliser plant would buy the
gas at- cost, price, but the two
sides have differed widely on
what constituted the real' Cost
of supplying the gas.

While a definition of the cost
price has apparently now been,
agreed, the actual price of the
gas to be supplied remains in
dispute.

The Govehunent is offering
$3.40 (£1.88) - per 1,000 cu ft
which the Scandinavians says
is far too high, particularly in
view of tbe tumbling world-
prices for fertiliser.

The Scandinavians noted
that Indonesia, for example,
sells gas for as litit^as $1 per
2,000 cu.-. fu^aodr. proposed
in turn that the Thai gas
should be- provided at $2.50.
This figure was calculated' from
the cost of Indonesian gas. plus
$1.50 per 2,000'cu ft that would
be paid for transportation to
Thailand. .

It has also been suggested
that since the consortium
agreed to supply fertiliser to the
Thai market at less than the
world price, the Government
should be prepared to subsidise
the cost of the gas. But it is
believed the Government
baulked at paying a subsidy. 1

The Government argues that,
fo allow such concessions would
expose' it- to attack from other

investors who were -not able to
gain such privileges.

Moreover, the Government
says that the low Indonesian
gas price is not relevant for
Thailand: in Indonesia the gas
is. a cheap by-product from the
exploitation of oil reserves,
while the huge investment in
the Gulf of Thailand has been
for gas alone.

To bolster its case, the Thai
Government has hired indepen-
dent consultants from the U.S.
who forecast that the world ;
fertiliser price will eventually
rise, and therefore the consor-
tium should be prepared to ■
accept losses for the first few
years before reaping high pro-
fits later.

At present, the argument
appears to be deadlocked.

thinking adds
dimension to the
bond business.

The success of a bond issue does not
depend . on precision and" expertise alone.

Creativity and a gift for innovation are
decisive factors, without them there would
be no new impulses for this market and our
clients. - '

That's why many prime borrowers employ
the services of ou rlong-term Capital to which
they otherwise would not have direct access.
Investors know that our tradition is one of
bringing quality names to the international
capital market. And of maintaining workable
seconda ry markets in the issues we manage.

Put us to the test.

A century of universal banking

Central Office: Frankfurt am Main/Dfisseldorf. New Issue De-
partment Frankfurt (611) 2144474. Bond placement arid bond
dealing: Frankfurt (611).2T44391 or 2144411', DQssekforf

(211) 8832531 or 8832565. Mannheim (621) 199431-439.
London (1) 2834600. New York, Atlantic Capital Corporation

(212) 3635600, Hong Kong. DB Finance (5) 255203.

Deutsche Banks: compiitersculpture: Tangible ^ Bond Business.

r- '■

: 4

•Financial Times 'Thursday June 3 1982

THE FALKIANDS CRISIS

The U.S. and Argentina: End of a beautiful friendship gg,

BY JIMMY BURNS fhl BUENOS A3RBS

THERE IS a new cartoon being
brandished around Buenos
Aires these days. In a normally
humourless city, the picture
shows Mr Alexander Haig, the
U.S. Secretary of State, hiding
under a heavy cloak, clutching
a machine-gun, a shady body-
guard behind a demonk: Mrs
Thatcher.

Whatever the outcome of the
Falklands crisis, one of the key
areas of Argentina's foreign
policy — its relations with the
U.S., is unlikely ever to quite
the same again. “ Britain is our
enemy, but the U.S. is much
worse than that — it is a traitor,"
said an Argentine diplomat,
summing up the public mood.

To the British, Washington's
decision to line up behind Mrs
Thatcher was natural- enough.
Indeed, London seemed to have
initially baulked at the fact that
Mr Haig wasted so much time
with his shuttle diplomacy try-
ing to make concessions _ to
Buenos Aires. But in Argentina,
the announcement that Washing-
ton would impose limited
economic sanctions on the
junta and offer military assis-
tance to the British task force
was greeted with horrified
incredulity.

Before Argentina’s invasion of
the Falklands, Buenos Aires and
Washington had been concen-
trating on forging new links.
For both President Ronald
Reagan and President Leopoldo
Galtieri, the alliance appeared
to spring from a common
appreciation of the state of the
world, particularly of Latin
America. Both saw a clear-cut
division between Co mmunis t
and Western influence and for
the need to defend the latter
whenever possible.

president Galtieri, on assum-
ing power last December, pas-
sionately declared his pro-
Western values and suhse- .
quently offered full backing for
President Reagan’s policy in
central America.

Argentine advisers skilled in
anti-guerrilla warfare, were sent
to help the' Duarte regime. In
return, the Reagan Administra-
tion adopted a more generous
attitude towards Argentina .than
that of former President Jimmy
Carter.

The fact that Argentina was
the one major grain producer
that refused to go along with

the emb arg o foil owing the
Soviet invasion of A fgh an ist an
was diplomatically forgiven.
Argentine’s human rights sfaort-
consngs another bone of con-
tention under President Carter,
were also seen through new
-eyas. Within weeks of President
Galtieri’s coming to power, the
Reagan Administration —bad
privately conceded that human
rights had improved sufficiently
for him to be able to recom-
mend a repeal of the Humphrey-
Kemiedv amendment which
restricts U.S. arms sales to
Argentina.

All this was taking place
against the background of
constant private meetings
between Argentine and U.S.
military officers and the nourish-
ing erf Argentine strategic
ambitions. The most important
of these ironically, was the pros-
pect of Buenos Aires assuming
the role of defender of -part of
the South Atlantic against
Soviet incursions.

However Utopian such a con-
cept, there is little doubt that
by the time Buenos Aires
decided to invade the Falklands,
the military junta felt suffi-
ciently secure in its ties with
the U.S. to predict a lukewarm
reaction from Washington.
Equally, Washington had con-
evinced itself that it wielded
sufficient .influence., with Presi-.
dent Galtieri to dissuade the
Argentine aimed forces from
going beyond the brink.

Only when President Reagan
telephoned President Galtieri on
the night of April Fool’s Day
did both 'men probably realise
for the first time the' full
extent of their mutual self-
deception. By that time, . the .
first Argentine war vessels were
already in Falkland waters, re-
portedly beyond recall.

The telephone call, in retro-
spect, should have been con-
clusive proof to both Buenos
Aires and Washington that their
links were not as strong as
either had at one time assumed.
But the subsequent emergence
of Mr Haig as mediator, and
the initial warm acceptance by
the junta of his initiative, was
a sign that the shock had tem-
porarily given way to renewed
hope.

Argentina now argues that
Mr Haig's mediation was a

foreign policy. Drawing on the

writings of Gen -Peron, they A_ ^ CU. Isvwr

want to see Argentina placed ' Iti

nn a nedestal and marshalling v

a °* “palm bombs found after British troops captured Goose Green settlement Reporters saw more
than 30 220kg napalm tanks in the centre of the village and 50 bombs stored at the airfield. The bombs were to have been dropped

by Pncara aircraft

cynical attempt- by- Washington
to play for time and allow the
British task force to move into
position. At the time, however,
there were enough Argentine
officials who firmly believed that
Mr Haig could wangle an agree-
ment from Mrs Thatcher, lead-

Costa Mendez, the -Argentine
Foreign Minister, to the Organi-
sation of American States,
recently, toned down a first
draft which was far more hos-
tile towards Washington.
Buenos Aires, meanwhile con-
tinues to insist that it is seek-

ifig to British recognition of Ing new lines of communication

Argentine sovereignty over the
Falklands.

Judging from more recent
statements by junta members -
and Argentine Foreign Ministry
officials, it would seem that
Argentine tempers have cooled
somewhat since the initial out-
bursts which followed the col-
lapse of the Haig mediation
efforts.

The speech of Mr - Nicanor

with Washington, by pursuing
contacts with people like Mrs-
Jeane Fitzpatrick, the U.S.
ambassador to the United
Nations and Mr William- Clark,
a- senior adviser to the State
Department . .

However, the damage is far
from being repaired. Arguably. .
the “ Latin Americanists ” with-
in the U.S. Administration have
been discredited as a result of

the Falklands debacle — U.S.
diplomats from now oh are
likely to be far more cautious
before going overboard in its
relations with potentially un-
stable military regimes in the
Third World.

U.S.- diplomats are far from
convinced that the Argentine
leaders with whom they have
talked in the past will be
around for very much longer.
The very unpredictability of
Argentine domestic politics
cautions against making any
firm commitment to the cause
of its foreign policy.

There is, however, a firm
conviction in diplomatic circles
that the events of the past few
weeks have opened up a

Pandora’s box of latent anti-
U.S. feeling which will be
extremely difficult to close.
While Latin American
solidarity behind Argentina has
fallen short of what Buenos
Aires expected, the fall-out of
tiEe Falklands crisis has. been
serious enough, not least in the
virulently anti-US. attitudes to
Venezuela and Peru. Venezuela
in particular, because of its role
in the Caribbean basin, is a
potential ally which Washing-
ton can ill afford to do without

In Argentina, the major
opposition grouping, the Peron-
ists, appear to be exploiting the
equivocation of the last few
weeks to the full, pressing for
a radical change in Argentine

on a pedestal and marshalling
the Third World behind \a new
non-aligned movement, dearly
distanced from Wa&Jngton. .

Such extreme nationalist
feelings are shared by .a number
of - Argentina's.- officers, who -
dismiss the current anti-US. -
sentiment of men like President -
Gaitierf as opportunism.

In the current anti-Yankee
phase, much-' is at stake, not.:
least US. business in. Argentina.-
The US. tops the list of foreign -
investors with investments esti- .
mated at about $2.5bn. The US.
business community straddles
most key sectors of the Argen-
tine economy with' names like
Ford, Exxon. IBM,' -Continental
Grains: and Deere. Forties the.
U.S. company with the largest
stake in Argentina. Its/ 1980
sales were worth SLffim'- Citi-
bank and First National Bank
of Boston rank high in -the list
Of local private banks.

U.S. hanks- both inside and
outside Argentina are ruffled
by Argentine nationalist voices
which are beginning to urge the
Government to declare a uni-
versal moratorium on its debts.
Argentina owes an estimated
$9.2bn to UB. hanks. _ -
There is also the much wider
question of future U.S. influence
in the area and the possible
realignment of Argentina with
the Soviet Union. Diplomats in "
Buenos Aires appear to ' have
ruled out the possibility of
direct intervention by the
Soviet Union or the Cubans hi
the Falklands crisis.

Nevertheless the Soviet Union
is likely to exploit the Falklands
crisis by stepping up its trade
with Argentina, and introducing
a new element in arms sales.
The U.S. appears to recognise
that unless a lasting- peace is
achieved between Argentina
and Britain, Washington’s own
trade in armaments to Buenos
Aires, suspended since 1978; is
unlikely to resume.

In foreign investment gener-
ally, the stack left by the U.S.
is likely to be eagerly taken up
by countries like Japan and.
Italy, who have not participated
fully in sanctions against Argen-
tina and are keen to build their
presence in the country.

New Issue

These Beads baring been sold, this announcement appeals as a matter of record only.

Jane 1982

CITY OF HELSINKI

(Republic of flnland)

DM 50 000 000.-

8 7 /a % Bearer Bonds of 1982 (87-92)

Harrier numbers
reinforced again

BY BRIDGET BLOOM,. DGFQrfCE CORRESPONDENT

Commerzbank

Aktiengesellschaft

Goldman Sachs
International Corp. -

Berliner Handels- und Frankfurter Bank

Dresdner Bank
Aktiengesellschaft

Westdeutsche Landesbank
Girozentrale

Kansallis-Qsake- Pankki

Kredietbank
- International Group

Union Bank of Finland Ltd.

Bank of Helsinki Ltd.

Algemene Bank Nederland N. V.

AI-Mal Group

Amro International Limited

Baden- W Bittern bergls cie Bank
Aktiuceulbdiilt

Badi sebe Kenunmude
Landesbank - Girozentrale -

Banca Cqmmertiale Ttellma

Banca del Gotterdo

Banco Am bras inn o

Banco di Roma

Bank of America fa to mfimul
United

Bank Hr Gmelmdrtschaft

AktieneueUsduIt

Bank Mees ft Hope NV

Bank of Tokyo International
United

Banque Bruxelles Lambert S. A.

Sample Fran false
da Commerce Extfaenr

Basque Gdnfrale
dn Luxembourg S. A-

Bnnque de l’lndochlne et da Snez

Basque Internationale
i Luxembourg S.A.

Banque Nationaia de Faria

Ban quo de Nenflize,

Schl umbers cr. Mallet

Banque Nordnuupe S. A.

Banque de Paris et des Pays-Bas

Basque Popnlaire Suisse S.A.
Luxembourg

Braque Sera din are en Suisse
Baring Brothers ft Co*

Limited

Bajerische Hypotheken- und
Wechsel-Bank '

Akttengewlkdiift

Bayerisdie Landesbank

Girozentrale

Bayerische Vereinahmk
Akticnscielkdialt

Bergen Bank

Berliner Bank
AktienteulUdNft

BHF-EANK International

OKOBANK

Osnnspankkien Kasknspankld Oy

BHF-FINANZ AG

Calsse des Ddpflte et
Consignations

Chase Manhattan
Capita] Markets Group
Chase Manhattan Limited

ChitstUnli Bank og XredHkasse
- Citicorp International Group

Compagnie de Banque
et dTnrestissements, CBI

Copenhagen Handelsbank A/S
County Bank

TAntted

Crfdlf Commercial de France

Credit Lyonnais

Credit Suisse Pint Boston
United

Creditanslalt-BaakrerelB
Dahn Europe

limited

Richard Dans 8c Co.,

Bankiers

Den tsch-Skan dinar] sche Bank
(Luxembourg) S. A.

DG BANK

Dents die Genossenschaltsbmnk

Deutsche Girozentrale .
-Deutsche Korn mimal bank -

Dillon Read Overseas
Corporation

EfTecteabanlt-Warbnrg

AktiengeuRsehaflt

European H*nWng Company
Limited

GePOSseaschaMche
ZeBtraPwnk AG -Vienna

Girozentrale and Bank der
Bsierreichlsefaen Sparfcassen

Aldkugeifllbchaft

Hamburgische Landesbank
-Gtoaaitrale-

Hawe Bank S.A.

Georg Handc ft Sohn Braiders
Kw n aa ad H fM ribdmit «af Akflra

Hesstahe T.ami»ff frpnfc .
-GlTozeatrale-

Hffi Sam uel ft Co.

Limited

The Hongkong Bank Group

Fostipankfcf

Iadustrlehaakvon Japan
(Deutschland)

Aktlenjesflllschaft

Kidder, Peabody Intern a ti onal
United

Kleimnut, Benson
Limited

KrediefbanlcN.V.

Kuwait Foreign Trading

Contracting & Investment Col

(5.A.K.)

Kuwait rnteniitionil
Inveatment Co. s. a. k.

Kuwait Investment Company
(S.A.E0

Landesbank Rheinlrad-PWc
- Girozentrale -

Landesbank Schleswig-Holstein
Girozentrale '

Lehman Brothers Khhn Lodi
International, Inc.

Lloyds B ank Tnt wnafimial
Limited

LTCB International
Limited

Manufacturers Hanover
Limited

Merck, Unek&Co.

Merrill Lynch
International ft Co.

B. Metzler seel. Sohn ft Co.

Morgan Grenfell ft Co.

United

Morgan Guaranty Ltd.

The Mkko SecuriQtt Go*
(Europe) Ltd.

SkopbanJc

Pierson, HeHring ftPiexsra N.T.

PK Christiania Bank (UK)
Limited

JPrivatbraken

AkUaelsfcab

N. M. Rolhscbfld ft Sons
Limited "

Srawa Bau)*(CBdexwdten)
Limited --c

Saudi Finance Corporal! oa

Scandinavian Bank

Limited . . .

J. Henry Schroder Waraft Co.

SchrSd er, Mflndnn eyer.

BRITAIN MAY now have mare
than 60 Harrier jump jet
fighter boznbers in the Falkland
Islands.

A new batch of Harriers, In
addition to the estimated 35
aircraft already there, have now
joined the task force, (he
Ministry of Defence announced
in London yesterday.

The aircraft flew to Ascension
Island, and then directly to the
Falkland Islands. They were
refuelled in flight by Victor
tankers, the Ministry said,
noting that the 17 hours which
the 8,000 miles journey took
was a record for the RAF.

The Ministry refused to say
how many extra aircraft were
now with the task force. Twenty
Sea Harriers left with the first
warships In April, and were
reinforced only two weeks ago
by a second batch of Royal Navy
and RAF Harriers, bringing the
total committed to the Falklands
to around 40.

However, eight Harriers are
believed to have been lost — two
earlier this week. The Ministry
announced yesterday that in the
course of bombing- the Port
Stanley area, two Harriers were
damaged and “ ditched on their
return to the task force". The

pilots were recovered safely.

There were unofficial sugges-
tions yesterday that the new
batch could involve another 20
aircraft and possibly more.

The importance of the new
arrivals is that the RAF
Harriers are maximised for
ground attack — they, are
designed for use on the central
- European front and operate
mainly from West Germany.

In tile current stage of the
Falklands campaign the RAF
aircraft could be called in to
support the marines and para-
troopers now advancing towards
Port Stanley, possibly from a
makeshift airbase at Goose
Green or San Carlos.

Their presence will free the
Sea Harriers for the job of pro-
tecting the task force itself.

The RAF has around 90
Harriers out of an original
order of some 110. Some 34
Sea Harriers were ordered for
the Royal Navy with all those
available — about 28-30 —
believed to Have been dedicated
to the Falklands campaign. It
was not dear last night to what
extent the new batch has
reduced the strength of the
RAF in Germany.

SfcradinjvlAa ftwMlh B aiftwi

Smith Barney,

Harr is Uphaffi ft Go.

Incorporated

Sodite Gfininde
Sodftfi G&texale de Basque S.A.
SptxbuUceniai Bank
Standard Ch arte red

Merchant Bank

Limited

Sumitomo Trust Inieniafioiial
Limited

Svensha Hradeksbanken

Swiss Bank Corporation
Intemthnal Limited

Itiahnw it ^AIiiri i

Union Bank of Switzerland
(Securities)

Limited .

Verdns- und Westbaak
AMtufadbckift

Ireland concerned at
future loss of exports

Namam International limited S.G.Warbnrj JbCo. Lid.

Narddentsdie Landesbank

Girozentrale

Nordflnanz-Bank Zfiridt

Nordic Bank
Limited

Dtanorske Credffbank

Osterzelchlsche L&nderirask
AMrageselteftaR -

'SaLOppenkrimjn&Gi).

Orion Royal Bank

Limited

M. M.Wazbi&f-Brinfitmaiiiit

Wtrtz&Co.

Westfidesbank .

Atflrt|in.ll«Ari t I '

Wfflbon*, GJynftCo. •.
Wood Gandy

WSrttembergbdie

SnuniukLioriHtadt

Girozentrale

Yuudchl International (Europe)
United

EXPORTERS in the Irish
Republic are studying reports
of orders lost from Britain
because of their Government’s
poMcy on the Falklands crisis.
Some traders fear resistance to
buying Irish products could be
more long-lasting than the
effects of IRA activity.

According to the Irish Export
Board, no significant loss of
business has been recorded so
far. -But contracts currently
under negotiation are regarded
as vulnerable and the full
effects of any anti-Irish feeling
to the British trade sector-
might not become clear for
about two months.

Exporters directly - involved
in selling to Britain claimed
yesterday (hat the decision of
Premier Charles Haughey’s
Government to puU out of EEC
trade sanctions against Argen-
tina and press for UN" action,
in opposition to British wishes-,
was already having a definite
effect on them.

One said: “The dropping ot
support for the British action
on the Falklands is seen as
Government policy, a formal
decision that reflects on all the
Irish, unlike the IRA outrages.
Any company with, a ‘ strong
Irish brandiiame .will suffer.
The whole thing has done
enormous damage.”

Another businessman who
depends largely on trading
across the Irish Sea said his
business losses totalled £200,000

since the Government adopted
its current policy.

He described the position as
"very, very serious" adding:
“It is bad enough having the
Northern Ireland situation . on
our bands but now to have this
problem, which is of our own
makin g, is thoroughly- disgrace-.

fui, Our representatives are"

Post resumes

THE Ministry of Defence
and the Post Office are join-
ing forces to establish an
airmail Unk wi{th -the. Falk*'
land Islands. Unregistered
aerogrammes, airmail post- .
cards and airmail letters
weighing up to 50. grammes
are being accepted for the
civilian population of the
islands, it was announced
yesterday.

getting an awful lot of rude
remarks and they are being
embarrassed.”

The United Kingdom market
is traditionally the biggest for

Australian
offer on
Invincible

CANBERRA— The Australian
Government has given Britain
the chance to pull out of an
agreement to sell the aircraft
carrier HMS Invincible to
Australia, Mr Malcolm Fraser,
Prime Minister, said yesterday.

“I believe this was the only
decent course an Australian
Government could take in the
circumstances," Mr Fraser said.

The ship is playing a vital
role in British efforts to retake
the • Falklands Islands from
Argentina. It- was due to be
sold under . a. deal said in
Australia to be worth A$47Sm
(£30Bm).

Mr Fraser said he had told
Mrs Thatcher that Britain was
not obliged to go through with
the sale in the light of its naval
losses in the Falklands conflict.
“We wouldn’t hold them to
some moral obligation." he told
a National Press Club lunch in
Canberra.

He believed the British
Government would want to keep
to the commitment to sell
Invincible, although there was
likely to be a review of the
naval losses sustained. ' '

“I still hope their review, will
come out the same way . ; . but
in light of the losses the British
Navy has had I didn’t want -
them to feel inhibited because
of their relationship with us," -
he said.

Reuter

In .London a Defence
Ministry spokesman said later
that Mr Fraser's .offer was.
being considered. “We are very
grateful for the offer,” he mill .

Mrs Thatcher, who received '
Mr Fraser’s message yesterday
morning, is expected to thank
him for his offer. The issue is
likely to be examined by Minir
sters hut the immediate
reaction in Whitehall yesterday ; 1
was" that Britain will probably -
continue with its plans for the
sale.

18 wounded to
be flown home

MONTEVIDEO — The British
hospital ship Hecla, carrying 18 ■■■
wounded British servicemen and .
24 Argentine seamen taken
prisoner in the South Atlantic; -
docked here yesterday. No.cdm-r- -
munleation was -allowed" with;
those on.' board, Bui one sailor
■held, up a sign saying “Love to
all at .home” ..

Hie following Is A pooled
dispatch from Charles
Laurence, Sunday Telegraph
correspondent in the Falk-
lands: -

“Yoinplng," they call ft to
the Royal Marine Com-
mandos, and it has turned to
be the British secret weapon
to the Falklands campaign.

It means marching: hump-
ing up to 120 lb of equipment
and all the arms needed for
attack at the far end of the
trek. Both the Commandos
and the paratroopers in the-
brigade .now. advancing oh
Stanley have swept across the
: marshy, billy country in days
and on their feet
The extraordinary effort hy

these tough men has appar-
ently taken the Arg entine
troops by surprise. British
intelligence on their move-
ments indicates that their
attempts to move around the
islands, too boggy for most
military . vehicles, 'has
exhausted them.

They did not count on tile
British force, at the thin end
of a 7,000-mile logistic tine,
being able to move with the
speed with which we have
since the breakout from the
beachhead at San Carlos last
Thursday.

Since then, paratroopers
have “yoTaped" to Goose
Green to take the garrison
there. Now we are poised for
the final leap to an attack
position in front of the
capital.

Brig Julian Thompson is
now installed at Ms forward
HQ. With hhn he has brought
his staff, a medical unit and a
resupply base as we move
■ forward. We have been out
with the picks and shovels .
once more, digging into
defensive positions on the
same scale as at San Carles
12 days ago.

My Commando unit expects
to move forward any hoar
now. Plans are chang in g w
fast, and are so flexible as
new information comes in by
the hour, that even the
colonel of the wait is not
sore where he will be within
the next 12 hoars or so.

Enemy troops continue to
retreat before ns and appe a r
to be gathering In fall ;
strength at Stanley. As we
march on fo an anticipated
contact; we find them gone.

' -We have overran Argentine
observation, posts and taken
prisoners, but the main force
retreated from their positions
days or hours before our
arrival. ' -
It has been an epic march,
the longest carrying full Wt
across rough country in the
history of the Commandos. I
have been with them across
40 miles of open country and
my boots, issned new on
board the Canberra just three
weeks ago, now look as if they
have been in service since

■ World War Two. '.

We have “ yomped ” ankle-
deep in marshland, waded
rivers, hauled up mountains.

We have kept going through
up to six hours of darkness,
a tumbling through the tus-
sock grass. Sleet, snow and
torrential rain have fallen.

When possible we have
taken refuge in farm build-
ings, where the first task has
been to dry out boots and
sleeping bags to prevent
trench foot and assure rest.

We have eaten meals—

“ scran”— cold to. avoid the
giveaway light of a hexamine
cooking stove.

Always in the cold light of
the Falklands dawn, the boot-
neck Marines and their
equally hardy officers have
been ready to “yomp oh ” for
the next stage of the journey.
They shoulder their packs,
check their weapons and,
stretched out over three
miles of the moois, keep their
eyes, open and their fingers on
their triggers ready for -any
unexpected contact - ; 'V
The commanding offieer
said: “In the" last war "^e
infantry walked . from " the
Normandy beaches to Berlin,
so we can walk to Stanley. But
in the. context of the hsaxd
going, and the weight carried
„• It has been a ’Herculean .effort
The brigade is 1 working .on
three fronts. While we con-
tinue -the. advance, they are
using every helicopter^ land-
mg craft and. tracked vehicle
to rush forward logistic sup-
piles; and at the same t&ue
- they must not forget : the
defence. "

■ At 8 am GMT, three hours
before dawn, I was kicked but
of m.jr sleeping 'bag and "told to '
dig a 'trench hi case of -a
counter attack or-airrauLThe
attack never came, butwe dug

. for. boars until- -we .h&d -com-
. pleted covered shelter
trenches more than 4 ft deep.

: In. * . few hours we shall
probably ' leave them ‘tb toe
■used - tor. the next' footsore
wariiorg to arrive on their
way to .Stanley.

The. survivors of the Argen-
tine trawler Narwal, sunk , by
British aircraft in the. war zone
on -May 2, . were immediately ,
taken to an Argentine naval*,
tony, for the trip . to Buenos

Ireland’s exporters although its :-^^ 5 ^ross : ftie River Hate: "

percentage share of Irish- trade
has "declined steadily aver the
past few years. In the first four
months of this year more tha n
39 per cent of Irish exports
went to Britain.

Agencies

• The British wounded, five of
whom are said to be in serious
condition, were to wait aboard
Heda pending transfer to' a
Royal Air Force VC-10 for the
flight to Britain.

Reuter

turned ' Commandos - Into a
- fearsome-looking troop. 1 After
.12 days to the open, with
Camouflage, cream : on • their
.faces, thto' are wild, dirty .and
unshaven. - - . .

. clothes . are ibtid-
; : stained- -anfi tbc .flirt .is ' in-
grained in tifwir hands. After
another day’s march .is done,

. even the most- senior officers
look like ditch-stained. trumps
—but armed to the teeth and
ready to scare even the
Vikings into a hasty retreat

<

: w .‘

,<v ''

r

>. c :-’. v V ^'

|§ppgf||

/*- V* ;

raandtal- Times Thursday- June 3 .1882

**n the

y surprjy

on i]

ami

WORLD TRADE NEWS

: r :FmaBCial. Tiaies ^ 1982

Japanese take wind put of French sales

A SHALL brass door-plate, two
flights up a dingy staircase
from an anonymous street
entrance, between a public
bath and a Rung Fu cinema,
bears the nam e of one of the
world’s few surviving specialist
flute makers, M Jacques
LefPvre, and bis trademark,
Jack Leff. He says he is “the
last of the Mohicans.”

French flutes, once unbeat-
able, have been swept aside by
a Japanese flood. Surrounded
by instruments, including some
of his own inventions, in two
. small, rooms which he shares
with two assistants. M Lef&vre
feels relatively sheltered. At his
top level — his flutes sell for up
to £3,000. each, and that does
not include the occasional 13-
carat gold model— even the
Japanese have to do things by
hand, he says, and they are
actually more expensive.

But the main part of the
market is dominated by im-
ports. Famous French names —
such as Lot, where M Lef&vre's
father worked — have vanished.
It is a small but telling example
of bow a traditional sector, in
this case dating back to - the
Renaissance, can fill prey to
Japanese competition, in terms
not only of price but also of

quality.

It is feared that the same
may be about to happen to
woodwind instruments. French
clarinets and oboes are
renowned and, even if importers
are well-placed in the lower
price brackets, still produce a
tidy trade surplus. 'The same
goes for saxophones. Wind
instruments as a whole are by
far the biggest and most
dynamic part of a music
industry which has been
decimated since the last
century.

Long-established instrument
makers have collapsed or— like
the three traditional French
piano-builders— been swallowed
up by foreign interests. In most
other specialities (even
accordions, swamped this time
by Italian competition), there
are only one, two or three small
manufacturers left to keep the
expertise alive.

The wind sector, by contrast,
still boasts some top names and
at least four industrial-scale
companies. Towering among
these ' is Selmer, with 500
employees and annual sales of
around FFr 100m (£90m). It
is run by three grandsons of
the founder; another relative
set up a Selmer company in the

BY DAVID WHITE IN PARS

ILS-i- which has outgrown its
French cousin.

The Paris-based concern is
alone . in France in producing
almost the whole range of brass
and woodwind. Its instruments
are favoured by military bands
from. Africa to Argentina, and
three-quarters of its production
goes overseas.

Production-line techniques
have been streamlined r over
the years, but M Georges
Selmer, the chairman, believes
there are limits to mechanisa-
tion. M uch of the assembly
’finishin g and polishing process
still needs to be done manually.

Despite the high cost Sehner
and other manufacturers see
tittle danger at the really top
level, at least for the moment.
For Die best clarinets, for
instance, they consider that the
only competition, conies from
each other.

But whereas Selmer has
managed to keep, growing, the
impact of competition is. keenly
felt at the more specialised
company LebJanoNoblet It
makes instruments, mainly
clarinets, both for professionals
and, under the 230-yeaF-old -
Noblet trademark, for students.

Production, varying between
12,000 and 15,000 units, is stag-

nant says 1C .LSon Leblanc.
Exports are down, and the 220
workers have, already been
asked to take their newly
acquired fifth week's annual
holiday. .The company still has
flutes in’ its catalogue— os does
Sehner^-but makes less than a
third as many as it did five
yeaxs ago.

The manufacturers’ first
problem is labour cost M
Leblanc reckons it accounts
for 80 per cent of his total
production tests. Then there is
the cost of materials. Although
the South of France contains
a treasure-trove of reeds for
clarinets, oboes and bassoons,
the ebony conies from Tanzania
and is rare and. expensive.

All have experimented with 1
synthetic 1 substitutes . for wood
or nickekctiver (M Leffevre says
he even tried a transparent
plastic piccolo) but are waxy
about the results! “ You’ll never
see an artist -playing, a plastic
clarinet." says Si Selmer.

Economies of scale have been
hindered by an underdeveloped
domestic market Although
there, has been, rapid progress
In recent - years — a bid to dis-
prove what M Andrd-Malranx,
de Gaulle’s Culture Minister,
once said about the French- not

being h musical nation— music
teaching bas long been -sadly
neglected - in the French school
system.

With limited local outlets,
manufacturers have lad to
export and / or — as a safer
source of guaranteed margins—
to import Leblanc-NoWet now
claims to be the only one of
the main companies to sell
solely what it makes. A rival
-such as Buffet -Crampon —
another Normandy company,
taken over last year by the UK
music firm Boosey and Hawkes
— provides it with competition
not oidy through its own pro-
ducts but also through imparts.

As competitors, the diversi-
fied Japanese groups such as
Yamaha can flex tw m mttr r -iwlj
financial and industrial muscle
and, through, incentives to'
music teachers, corner a large
part of .the growing market
The French co mpani es concede
.-tint Japanese instrimnutt have
been getting Verier and better.
“I’ve been to Japan. sod seen
the same machines as ours,”
says M Leblanc, “only theirs
axe automated.”

Import barriers seem, tn be
out of the question, if only for
the reason that Japan is a
prime client for quality Flench

Woody Herman fn action: Tokyo amid soon change the tune

instruments. Leblano-Nobiet
actually sells there through
Yamaha.

A report by the CtHnanerce
aid Craffo Ministry two years
ago already- warned about - the'
threat posed by Japan, through
“the dumping practised by its
■main firm* amf their consider-
able-' -financial means.” An
inter-ministerial plan for the
wind sector is expected to come
out durmg the summer — the
main idea behind it being the

need’ for Testractiiring. .

• There “have ' already ’ been
precedents, such as the, Jamah-.
■mg of a 'new piano company,
Rameau, in-tjhe.eariy 1970s, and
-recent moves t»- regroup string
instrument makers. . ’7 '.

M •Le4fevte p s instinct few
survival has already taken him.
— as from January’ this ye&x —
into a link-up wtih -Buffet-
Crampoii, which now does some
of bis finishing work' and has
hade room for a slightly

cheaper range of Leff flutes.

But tiie. trouble is that few in
. tip* sector are wilting to budge.
; fit .Selmer .thinks regrouping
may hot be a bad thing 1 , for the
smaller companies* -but be
waits - to " keep Slimier as a
family business '

M Leblanc is more categoric:
he: places no hopes' in a
reorganisation of tire industry.
“I don’t see what the Govern-
ment could do" be says.

Sole British success in Nigerian project

BY QfJBCTfN PEEL, AFRICA EDITOR

STIRLING INTERNATIONAL,
the British-based civil engineer-
ing contractor which has just
won a share in a $350m (£194m)
contract for part of Nigeria’s
new $2.5bn standard gauge rail-
way, ranks among the top 10
construction industry exporters
in Britain, but has no contracts
within the UK

From a head office hi May-
fair, and a design office in
Rome, the. company is now
responsible for an annual
turnover of some $320m from
a string of road, airport
dam-building and other civil
engineering contracts in Africa
and Latin America.

The Nigerian railway con-
tract 'won by Stirling Inter-
national in a consortium with
its Nigerian subsidiary, Stirling
Civil Engineering Nigeria, and
Impresit a major Italian share-
holder, is the largest won by
the group.

It is one of six now awarded
by the Nigerian Government for
the new railway to be built

from Port Harcourt to the steel
works being built at Ajaokuta,
on the banks of the Niger river.

The success of (he Stirling
consortium represents the only
direct British success in the
huge railway project, although
even that British Hide is some-
what tenuous: Stirling Inter-
national of the UR is wholly-
owned by Sterling Inter-
national of the Netherlands,
which in turn is controlled by
Italian shareholders, include
Impresit part of the Fiat group.

The other five contracts went
to companies from France
(Dumez and Dra gages et-
Travaux Publics), Brazil (Para-
napanema), Yugoslavia (Parti-
zanska), and a Chines e-Swiss
consortium including Noga and
Elektrowatt of Switzerland, and
the Chinese Civil Engineering
Construction Corporation

British exporters — including
British Steel — are, nonetheless,
well placed to win orders both
from the Stirling consortium
-and tile Chines e-Swiss con-

sortium. Finance for both con-
tracts is being arranged by
British bankers — Lloyds Bank
International and Morgan Gren-
fell — With backing from- the
Export Credits. Guarantee
Department for any - 'British
procurement.

Stirling Nigeria currently has
13 contracts under way, all of
them road contracts, apart from
work on the Dadin Kowa dam
in Banchi state. The subsidiary
is much the largest in (he
group-, with a turnover of some
$200m annually.

The company was also re-
sponsible for the last railway -
line built In Nigeria, the spur
of the traditional narrow gauge
system from Jos to Maidttgnri.

Other . African . contracts
which the group has won in the
past month include the new
international -airport outside
Mbabane, (he capital of Swazi-
land, worth £12m, partly fin-
anced by the World Bank, and
preliminary work for the Mom-
pul e power station in Botswana,

r-ar-fc

1 BE R(i

J** /I

worth Pula 6m (£3.2m).

The group is also active in
East Africa, where it bas sub-
sidiaries in Kenya, Uganda and
Tanzania, and more recently in
Latin America.

Major contracts in Colombia
indude a $100m job for re-,
habilitation of the Bogota-
Medetiin road, and . a share in_
the • Betania hydro-electric
scheme. .

Japan timorous* Thom says

BY LARRY HUNGER IN BRUSSELS

JAPAN’S latest trade, liberalisa-
tion programme aimed at Re-
fusing its. economic .. quarrels,
with the EEC and the ILS. -is
likely to prove insufficient, M
Gaston Thom, President of the
Europ ean paid in

Brussels yesterday.

'While emphasising - that-
nelther the Commission nor the
EEC member states had, as yet.
fully evaluated' the . Japanese
programme, M Thom said that,
in his view, the measures may
“fall far short of what is'
necessary.”

Japan, which, according to
the Commission, has registered
an almost constantly growing

trade surplus with the EEC to
reach more than. $12bn (£6.6bn)
in 1980, .announced at the end
of last week a trade liberalisa-
tion package that would abolish
or cut import tariffs on a range
of products. The items affected,
the Japanese said, accounted for
; 8R per cent of Japan's imports
last year.

Speaking before' this .week-
end^ . seven-nation economic
summit meeting at Versailles,
which will include Japan along
with the Larger EEC states, the
US. and Canada, M Thom said
that, while the Japanese plan
could be seen favourably as a
move in the right direction, it
was clear that the -Japanese

were still being “a little too
timorous.”

M Thom had 'simBarfeelings
towards aspects of U.S. policy.
He returned to the attack , over
the high level of tJ.S. interest
rates, nailing for “budgetary
rigour” in the U.S., and a
greater . .effort by the Reagan
Administration . to ' share its
responsibility engendered by
the power of its reserve cur-
rency.

Admittedly, the T7:S. drive to
control inflation had .been
necessary. However, the U.S.
had “broken the back of infla-
tion, but interest rates have not
gone down for a year.”

AD these bonds having baen sold, this win oanca-
niont appears as a matter of record only.

REPUBLIC OF ICELAND

DM 75,000,000
9%% Bonds due 1992

BANK BRUSSEL LAMBERT N.V.

KREDDETBANK INTERNATIONAL GROUP

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India cats export .
duties oil 100 items ;

The Indian Government yester-
day' cut export duties by varying
amounts on over 100 items, in a
bid to increase foreign exchange
earnings from capital goods,
components, project exports and
other categories, writes K. K.
Sharma In New Delhi.. Tins
follows a number of incentives,
given to exporters in the last
budget of the government
presented on February 28. Since
then the Finance Ministry has
been studying the export duty
structure.

Ford claims Escort was IN.. Zealand and Iran

best seller last year

Ford claims that its front-
wheel-drive “world ear,” the
Escort, was the world’s liest-
■ selling car in 1981 with pro-
duction reaching 823,000,
writes' Kenneth. Gooding. " In
second place, according' ta the
Ford statistics, was the Volks-
wagen Golf, with production
totalling 759.000. Hie Escort,
launched throughout .' the
world in September 1980, 're-
placed the Toyota Corolla as
the world’s best-seller. .

sign lamb-for-oil deal

New Zealand and Iran have
signed, a lamb-for-oil deal, worth
about NZ$160m. The deal, has
been , on-and-off • for several
months; and only -a month ago
the Iranians said they were no
longer interested writes' Dai
Hayward in Wellington, But
yesterday a jubilant* ’ New
Zealand Meat Board, announced
a contract had been signed with
Iran's Government trading' coiv
poration. "

Tokyo opens
‘windows’ for
businessmen

By Charles Smith, '

Far East Editor in Tokyo ' "

TWO JAPANESE, business
associations dealing with
banking and insurance have
opened “’windows*’ to handle
enquiries from foreign com-
panies wishing to do business
inJapan. .

The Federation ' of Bankers*
Associations and the Life
Assurance Association.-* of
Japan said they had. been
requested by. the government
to do something to help
foreign businessmen. A plan
to open “information
windows ” for foreign banks,
insurance and securities com-
panies, was announced . in last
week’s . eight-point . trade
liberalisation package.

' A spokesman for the Feder-
ation. of Bankers’ Associations
said yesterday that the asso-
ciation had begun handling
queries. — in English — from
foreign banks. •.

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Du». to- cBitpmar default -se*eraL. «w
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Basle features: 2,100 kW to ZJia kW
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For the first time, ECGD are
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- And that puts newbusf ness and
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ParticularJy ifyour Bret stop Is ■’
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Financing capability ;

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i-

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\jl' -

! Scrap
i rule lj

C-;.

Financial • Times Thursday June 3 1982

AMERICAN NEWS

Free speech

fc-sN.'

•-X ■_

n

Si

n

3£* By Krttsty h»

5£." Wajbmfton - ■

$THS U.S. constitution provides
gU^mericans with an (almost)'
p .-inalienable right .to! topless
3£;; entertainment. Waitresses
dangers who wish . to appear
ig ^aude, or.' at. least scurf-nude,
. bars anal plaees- of public
3 ^' reirtertaffiraaeut are ■ exercismg
their- rights to. -free speech
Si.-under the' constitution's hal-
lowed first' amendment. A

■ State ' or local authority can
only regulate such enter tain ,
znent if it amends its state
constitution to provide It with
■special powers to do this.
These are the conclusions of a
. five-year courtroom battle
l = between - the state . of New
: !I York - , and a 'group of tavern
' ‘ owners in the' upstate city of
1_ Buffalo. lake many of the
great dilemmas of U.S. life
and morals, this one came
down to a -clash between two
_ parts of the constitution and
between the rights of states
and of the federal Coven*
meut

On Tuesday the U.S. Supreme
““ Court made its final deter-
mination between' the first
amendment’s guarantees of
free expression — ■ even
through the use* of body
language — and the right of
states, .under toe 21st amend-
ment of the constitution, to
attach conditions to .the sale
of limiorin public nremises.
Sn’-urisingJy, the court's decision
? that the New York state
.. Unuor Authority could not
ptori waitresses in bars taking
their clothes off for thpir
clients’ amusement was not a
• throwback to its 1960s reputa-
r. tipn for exotic liberalism. On
toe contrary; it was a victory
. for the normally conservative
states’ rights movement
;The court found that the New
„ York state constitution took
precedence over the U.S. con-
stitution on this issue.

.. Both constitutions have

!; a free speech amendment, but
'' unfortunately for New. Yoric’s
/ prudes, the state constitution
has no analogue of the 21st
*. amendment which was intro-
duced by the federal Govern-
ment at toe end 'of prohibi-
tion.

'Thus “toe 21st amendment has
r no application,” the Supreme
- Court decided. So, unless New
' T York legislators amend their
own constitution, the state’s
100 . topless bare can on
; exercising their constitution-;
; ally guaranteed freedoms;

Baker unable to end Taiwan arms sales dispute

BY TONY WALKER Ril : PEKING

SENATOR HOWARD BAKER,
Republican; leader in _toe U.S.
Senate, yesterday said be had
been unable to.resoJveSlno-U.S.
-difference* over American arms'
-sales to Tajwan. ;■* •

■ In . Peking ■ he ’ todd ' Deng
Xiaoping, Communist Pasty
Vice-Chainnan, -that there was
virtually no ' chance of any
revision .to ' the controversial
Taiwan Relations Act which pro-
vides a framework for a cou-
rt mringr relationship between
the U.S. and Taiwan.

Carina has. bitterly denounced
the". Act; which provides for
certain . security guarantees to
the -.Taiwanese, as an infringe-
ment on its sovereignty. Peking
has warned that if the U.S. con-
tinues to serif arms to Taiwan it
will downgrade relations.

“I would not support a major

revision or any revision of tore
Taiwan Relations Act at tins
point.” Senator Baker told, a'
Press conference yesterday. This
had been made dear in his talks
with Mr Deng. ■

Meanwhile, Zhao .Zlyang,
China’s Premier,- has given a
pessimistic assessment of the .
state of negotiations between
Chinese and U.S. officials on toe
-Taiwan issue to Zenko Suzuki,
his Japanese counterpart

* “ Negotiations have achieved
no results so far.” he said in
Tokyo earlier this week. " U.S.
Vice-President George Bush’s
visit to China has promoted the
two rides’ understanding of
each -others’ stand. Thus the
talks were conducive. But so
far toe U-S. side has made no
steps forward to solve toe ques-
tion of arms sales to Taiwan, -

“ Differences between the two
sides remain to lie settled and
the crisis has not passed.”

Again in Tokyo yesterday
Zhao Zlyang said: "If toe U.S.
persists in selling arms , to
Taiwan; it. would have a very
serious negative effect on rela-
tions ■ between ' China and the
U.S.”

In Taiwan, -Republican
Senator Barry Goldwater said
Congress would strongly resist
amending the Act He accused.
Peking of trying to bully the
U.S. into abandoning Taiwan
and of planning military moves
against the island.

Mr Bush visited Peking last
month for talks on toe vexed
Taiwan issue. ‘He left, saying he
had a clearer idea of China’s
objections to U.S. policy,
notably continuing arms sales

to Taiwan, and said he would
relay - to President Reagan
Chinese concerns.

Senator Baker said yesterday
his meeting with Chinese
leaders was "candid, and forth-
right” This was particularly
toe case with respect to toe
previsions of the Taiwan Rela-
tions Act, inducting the sale of
arms to Taiwan,

"It was apparent from our
discussion that the Chinese
were keenly aware of the
Senate's role in connection with
the Taiwan Relations Act— not
only its passage* but as ; well in
its implementation.”

Senator Baku* said the ques-
tion- of the Act was discussed at
length with Mr Deng, but he
would not go into details about
those discussions.

Asked to assess the state of

Sino-US. relations, Senator
Baker said: “I think toerifs a
good solid barfs on which we
can build even better relations
between toe U.S. and China. I
don't think toe present difficul-
ties and disagreements on the
Taiwan Relations Act and arms
sales are likely to prove a
permanent impediment to the
improvements of relations.

“The situation at this time
clearly is one of delicacy. There
is a strain in toe relationship
between our hations on these
issues, hui I think the friend-
ship and mutual advantage far
outweigh the disagreements
and toe tension between us

“Tbe first thing is to make
sure we keep our cool on both
sides.”

• Howard Baker (right)

U.S.-Chinese nuclear cooperation possible, says Stoessel

BY ANATOLE KALETSKY IN WASHINGTON

AN AGREEMENT on nuclear
co-operation between the U.S.
and China may be one of the
benefits of closer relations
between the two countries,
according to Mr Walter
Stoessel, the UB. Deputy
Secretary of State.;

Over the past year there
has been notable progress in
four key areas of UB.-Chinese
relations — technology
transfer, aims transfers.

U.S. mortgage
foreclosures at
record level

By David Las cel In in New York
THE NUMBER Of U.S. home-
owners who are behind with
their mortgage payments has
reached a record level, the
Mortgage Bankers Association
reported yesterday. As a result,
foreclosures are also running at
toe highest level.

According to th'e. association's
latest quarterly survey, the fore-
- closure rate was muring at 0.53
per cent of total loans in the
first three months of this year,
up from 0.41 per cent in the
-filial quarter of 1981.

Although mortgage rates have
declined to about 164 per cent
from nearly 18 per cent at the
turn of toe year, they are still
exceptionally high. Because
many. American homeowners
have fixed rate mortgages, being
behind on payments is usually
attributed to the rise in unem-
ployment rather than, directly
to higher interest rates.

Scrapping pf car safety
rule illegal, says court

BY CHRISTOPHER PttUCES tN WASHINGTON

-THE REAGAN Administration
acted illegally in sera pp uig a
rule to force manufacturers to
fit all cars with automatic safely
equipment, the U.S. Court of
Appeals has ruled.

The decision, taken last
October during President
Ronald Reagan’s review of
government regulations, was
“arbitrary and unlawful,” the
court said.

In an unusual ruling, how-
ever, the court gave the National
Highway Traffic Safety Admin-
istration (NHTSA). — toe
agency which threw out the
requirement — 30 days either
to come up with better -reasons
for rejecting it, or to implement
if "on a timely basis.”

Tbe rule would have required
all new cars to -be fitted with
either dashboard and steering
column self-inflating airbags or
automatic seat belts designed
to slide across the occupant's
lap and shoulder as the door
was dosed.

Manual belts are still required
in all passenger cars, although
there is no requirement for
their use.

The so-called passive restraint
rule was first proposed in 1969
and strongly supported by con-
sumer activists. But it was not
until 1977 that toe Carter
Administration ordered its
phased implementation.

■ It wasregulaxjy attacked by
Mr Reagan during his presiden-
tial campaign arid after he took
office was placed dose to the
top of bis anti-regulatory
administration's “hit list”

The Appeals Court judges
counter-attacked this week, say-
ing the NHTSAV action- last
October . took more account of
the interests of the car industry
than of road safety, which is
supposed to be its prime oon-
cem.

“One out of every 60 children
born today is expected to die in
an automobile accident and two
out of every three will suffer
injuries in a crash;” toe judges
said.

. The National' Association pf
Independent Insurers welcomed
the court ruling, claiming that
automatic safety devices — If
fitted — would save 10,000 lives
a year

The motor industry, however,
has long claimed that people
would uncouple tbe automatic
restraints which would cost
twice as much to ins tall as
manual belts. Tbe -NHTSA
adopted this argument when it
scrapped the rule last year.

Surveys show that only about
10 per cent of U.S. drivers use
manual belts. Car makers gave
up development work, last year
on airbags on tbe grounds that
they would be tea costly and un-
reliable. They continued work,
however, on automatic belts.

‘Disband killer corps’ call

IAN SALVADOR — - Politicians large number of political assis-
md newspapers here are de- sinations.
aanding that the Civil Defence
Jorps, a paramilitary organisa-
ion of rural guards blamed for
number of recent civilian
nurders in El Salvador, be d is-
landed or militarised.

Eighteen guards are cur-
ently under arrest in connee-
ion with tbe deaths, inclading
he mass murder of 22 people,
ind the killing of four Christian
lemocrat mayors = and eight
ither party . workers.

The killings this month
roused public ~ reaction from
ioto Christian Democrats and
Jonserva lives. The Civil
)efence Corps has 'set up two
ears ago . by the Defence
linistry to help to fight -a
^ftist guerrilla insurrection
hat has cost 34,000 lives in the.
last 31 months. ■

The rural guards are armed
irith old rifles and pistols..

'heir number is unknown, but
sTimates run from 5,000 to
2.000. Many are believed to b&
aembers of Orden, another
Irra-Rlghtist paramilitary
uxaj guard disbanded two years
go-after beuig blamed for a

Leaders .of the Christian
Democratic Party, - which* lost
power to a loose coalition of
four conservative parties during
elections for a constituent
assembly on March 28, are
blaming “Rightist forces” for
creating a “climate of permis-
siveness" for the murders.

“The Right has the feeling
that success in tbe election has
given them space for new para-
military actions,”, the Christian
Democrat Assembly member
Roberto Viera said last week
after three guards arrested, in
connection with one mayor’s
murder were - identified as
members of Assembly Speaker
Roberto (TAubuisson’s Ultra-
Rightist Republican Nationalist
Alliance,

But the Alliance secretary
general. Mario .Redrelli, denied
nil responsibility. “We didn’t
ask everybody who signed our
party book: ‘Ar.e you sure that
you’re not goingt to shoot some-
body?’ We cannot control what
goes on out in the boondocks,
he said. - . •

AP

legislative restrictions on
trade 1 and Investment - and
consular and diplomatic rela-
tionships— Mr Stoessel told
the National Council on U.S.-
China trade.

This progress has at times
“tended to be obscured*” by
the controversy over U-S.
anns sales to Taiwan, which
China regards as an Intrusion
into Its internal affairs. But
Mr - Stoessel predicted that

there would be- a “durable
long-term- partnership

between the U.S. and China,”
based oh “common strategic
perceptions” on the Soviet
Union and mutual economic
benefits from a deepening
bilaterial trade relationship.

Tbe UJL has a strong
national Interest in contribut-
ing to China’s modernisation,
Mr Stoessel • said, both
because of the business

opportunities this could* pro-
vide for U.S. Industry and for
geopolitical reasons:

Accordingly, there has
been a dramatic rise In TJ-S-
ex ports to China, over .tbe
past year! Between July 1981
and March 1982, 1.203 export
licence applications for China
had been approved, , an
increase of 40 per cent com-
pared with tbe previous year.
Hr Stoessel said.

China’s co-operation on
nuclear technology, on which
the two countries have been
conducting discussions^ was
one of numerous examples of
* closer links Mr Stoessel men-
tioned.

Its significance is that
China's possession of nuclear
weapons had been thought to
rule out most types of nuclear
co-operation between the two

countries. However, China
has in the past expressed
interest in nuclear co-opera-
tion and is thought to be
considering the construction
of two 900-Mw reactors in
Guangdong province, near
Hong Kong, if it can obtain
Western technological assis-
tance.

China- is now the 14to
largest trading partner of the
VS.

Reagan
sets off
for Europe

WASHINGTON — President
Ronald Reagan set off yesterday
on Ms first European trip since
taking office, declaring himself
proud to represent toe UB. ana
promising to try to bolster toe
unity of the major industrial
democracies.

Embarking on a 10-day tour,
Mr Reagan made a farewell
speech to 200 top-level govern-
ment officials,

"I can only tell you that I
shall be more proud than I’ve
ever been of anything to be
there representing the UR. with
an opportunity once again to
express to all of the world what
it is we think we represent*
what it is we want for all the
people of toe world," be told
the cheering audience in toe
White House.

The trip includes two s ummi ts
— an economic conference in
Versailles and a Nato meeting
in Bonn.

“There’s been nearly a decade
of troubling events and uncer-
tainty among the allies and. our-
selves," the President said, “but
today there is a re growth, of
unity and purpose,

Mr Reagan eaid the alliance
had “ weathered threats of
aggression and internal dis-
agreements, but we’ve main-
tained a sense of unity and a
commitment to freedom and
we’re still being tested possibly
more now than ever before.”

AP

JVC: A

Video Maker

One of a series of interviews by
Mr. Dick Wilson and Dr. Yotaro Yanase

Steps Up Its International Activities

JVC (Victor Company of Japan, Limited) is a leader in the world consumer
electronics industry as an audio and video products manufacturer employing the
most advanced electronics technology. JVC is the original developer of the VHS
video cassette recorder and' the VHD- video disc system and has been an industry
pacesetter since its founding in 1927.'

JVC employs about 12,000 staff arid chalked up sales of 494 billion yen in the
fiscal-year 1981 ended Marcbl982. Those sales broke down as follows:

- FY- I9B1 • FY-1977 -

Audio equipment s.;.’.. V.lj. 21% _ 45%

TVs..: w%.:,’. " .26%'

Video and video-related products. .; 64% 17%

Records, pre-recorded audio tapes ... l. 2%. 5%

Other (public address systems* etc.) 3% - .- ; .7%

.. The ratio of video and video-related products sales to total has increased more
than three-fold from 17 per cent in PY 1977 to 64 per cent in FY 1981, reflecting the
remarkable expansion of the home video market over tbe past few years. Also, the
company’s export ratio rose from 46 per cent to 71 per cent during the same period,
supported by an expanding demand for VHS video cassette recorders and audio
equipment *' ■

Overseas, JVC. is establishing production facilities, sometimes in cooperation
with the leading consumer electronics manufacturers of the world. J2T Holdings
B.V. is a typical example. JVC and two other partners— Tdefunken of West Ger-
many and Thorn EMI of the UJ5L— formed this new joint venture in Rotterdam in
March, 1982 with equal capital participation.

J2T Holdings B.V. will manufacture tbe most advanced electronics products
such as VHS video cassette recorders, VHD video disc players at its manufacturing
subsidiaries in Germany and theTJ-K.

r •*' JVC Ls raising funds to support future business expansion. -Last December, it .
issued a convertible bond worthJJS$100 minion in Europe, which quickly floated in
that market - ' -

JVC’s long-term corporate plans call fra* expanding the range of innovative -
audio and video products for consumer, educational and industrial uses, while
further integrating JVC's expertise in electronics, mechanics, chemistry, etc.

Not very many executives can speak
with, certitude about tbe broad future
which lie ahead, but Mr. Ichiro Shinji,
President of JVC, says confidently, "We
have only justset foot on the terrain of the
video market We have gained some re-
nown far our latest video (fisc but -this is
only the tip of an emerging iceberg.? *.

JVC’s VHS video cassette recorder was
a hit. product which put JVC firmly in the
international limelight.

President Shinji continues, "Five years
ago video represented only five per cent
of our total sales but now it is almost two-
thirds, an extremely rapid growth. But
the video market penetration is still very
low in all major markets, only 10 per cent
in JaparC 4 to 5 per cent in the UB. and 6
per cent in Europe. The market potential
therefore remains virtually untapped, ■
While colour TV sets have a potential
penetration ratio of mare than 100 per
cent, estimates for video units should be
,about60to70percent”

JVC currently produces about 200,000
units of VHS video cassette recorders a,
month. VHS technology, originally de-
veloped by the company, has been
adopted by a wide cross-section of major
Japanese manufacturers as well as by a
- growing number- of leading foreign- elec-
tronics companies.

? ’ Creating .

. . a New Medium ^ .

users will be able to maximize their own
specific interests and needs. The VHD
system is expected to find diversified ap-
plications in the general consumer,
educational and industrial markets.

■ “The video disc, however, requires a
variety of software such as ‘user partici-
pation programmes’ to make the most of
its sophisticated features. We believe we
most develop both hardware and software
to further penetrate the consumer and
business markets. Electronics have been
developing much faster than anyone ever
expected, thus providing a huge potential
for future refinement and development,’’
President Shinji concludes.

The VHD video disc system has been
adopted by a dozen different Japanese
companies. Overseas, the system has so
far been adopted by Thom EMI, Tele-
funken and General Electric of the U.S.

* Production Overseas
and Cooperation
with Foreign Partners •

These arrangements represent' the first
attempt in tbe consumer electronics in-
dustry to establish joint ventures involv-
ing Japanese, European and American
partners. This international marriage of
the most advanced technologies and ex-
pertise of these leading companies will
give birth to entirely new "information”
and “home entertainment” industries on
an international scale in terms of-both
software and hardware.* 1

Yanase: What was the motivation for
these ventures with foreign partners?

Shinji: Our partners in. the European joint
venture company called “I2T Holdings
B.V.”, to take that as an example had
previously been our OEM (Original
Equipment Manufacturing) customers,
to whom we were supplying VHS video
cassette recorders. When they asked to
produce their Own recorders, we were
more than happy to offer our technology
and, cooperation.- We-know that the
popu l a riz at io n of VHS video cassette
recorders, as we see it today, owesinuch
to marketing and other promotional
-efforts by these companies. But, after in-
depth study, we found separate
production by individual companies less
efficient, and thus finally came to an
agreement to establish' a joint
manufacturing venture based in Europe,
with equal participation by those three
companies.

R&D Management

The JVC-developed VHD (Video High-
density Disc) video disc system means
tbe creation of a new medium through
which users will be able to enjoy features
not available in current video systems..
Tbe random access function isa.gocxLex.- ..
ample, whereby users can easily locate
any desired part of the programme on a
disc within a few seconds. - - --

By fully utilizing the versatile functions',
offered by the- VHD video disc .Systran;

JVC has been producing audio equip-
ment in Singapore since 1978. Last
December it established a 100 per cent-
bwned production subsidiary in Mo-
enchengladbach, in the suburbs of Dues-
seldorf, for the assembly of VHS video
cassettes and the moulding of related
parts. The assembly plant is scheduled to
start operations next spring.

J2T Holdings B.V., JVC’s joint venture
with Telefuziken and Thom EMI, will
have two manufacturing arms in Europe.
One mil be in Germany far the production
of VHS video cassette recorders and the
other. ‘in the U.K. to make both VHS video
Cassette recorders arid VHD video (fisc
players.

In the U.S., JVC has joint ventures with
General Electric, Thorn EMI and Matsu-
shita Electric Industrial for programme
distribution and production and manufac-
ture of video discs and players.

Wilson: How do you organize your R&D?

Shinji: JVC has a long established tradi-
tion for innovation. A number of “indus-
try firsts” have been produced by JVC
as a result of the strenuous efforts iff
our dedicated engineers and re-
searchers. Our management is re-
sponsible for creating an environment
for research that encourages engineers
and researchers to always find a
broader perspective, so that they will
not withdraw into their own specialized
fields. As our Chairman Kokicbi Mat-
suno repeatedly points out, it is ex-
tremely important to strengthen hori-
zontal collaboration and cooperation
among employees as our corporate divi-
sions tend to be structured vertically in
each operation. In short, it is manage-
ment’s responsibility to organize R&D
efforts that will produce maximum re-
sults by combining and integrating the
innovative ideas of engineers and re-
searchers as much as possible.

JVC often organizes special project
teams in order to concentrate on the de-
velopment of an integrated system. These
special teams of engineers and re-
searchers come from a variety of fiekb
covering electronics, mechanics,
chemistry, etc. It was one of those project
teams that developed the VHD video disc
system.

£ Strong People,

Strong Products ^

Mr. Ichiro Shinji
President

or two geniuses but a large group of em-
ployees composed of a variety of
talents, characters, abilities, and skills.
Like an orchestra which creates beauti-
ful music when each instrument pro-
duces the right sounds, the ensuing rer
suit is a soothing harmony. I believe
only such people can make competitive
products whirih meet the market need
and which we therefore call “Strong

’’ Products.” To create such strong prod-
ucts, it is necessary to strengthen our
R&D efforts; and JVC’s investment of
about 4 per cent of its total sales on
R&D is a good example of the com-
pany’s dedicated attitude toward this
goal

WUson: Now that you are moving more
in international circles, is your staff
also becoming more international?

Shinji; JVC's products are becoming
international through tbe expansion of
exports more rapidly than the company
staff. It is often very difficult to find a
person recognized as truly international
anywhere in the world, but perhaps
even more so here in Japan. One reason
for this is the language barrier. A truly
internationally-minded person must be
able to speak at least English and possi-
bly 1 some other foreign languages. Eng-
lish is, however, a minimum require-
ment. With the ability to appreciate dif-
ferences and put things into wider per-
spectives, a person should be able to get
across his or her point of view clearly
and effectively among people with dif-
ferent cultural backgrounds.

Enhanced cooperation with foreign
companies will become even more in
demand and more important in the
future. Tins will also increase the need
to- understand .each other not just
through products we sell overseas, but
through our own person-to- person con-
tacts. I would like to see more and more
people working in the international
arena regardless of their nationality.

Shinji: “Strong People, Strong Pro-
ducts” is the motto I have been advocat
ing since I was appointed president of
JVC. By “Strong People" I mean not a
group of people led or controlled by- one

VICTOR COMPANY OF JAPAN, LIMITED

HEAD OFFICE

1. 4-chome, Nihon bash 1-Honcho,

• Chiio-ku, Tokyo 103, Japan
Tel: ’(03) -241 -7811
JVC (U.K.) LIMITED
_Eldohwall Trading Estate,

Staples Corner 6-8 Priestley Way,
London NW2 7AF, U.K.

Tel: (01) 450-2821

Financial Times Thursday June S 19S2

UK NEWS

John Laing pays
£161,000 to
former director

' BY RAY MAUGHAM

JOHN LAING, one of die largest
building and civil engineering
groups in the UK, has paid
£161,000 to a former director.

The compensation, which
includes pension contributions,
is believed to have gone to Mr
Graham Parsons, who was chief
executive until the end of May
last year.

Mr Parsons’ departure was
followed by a series of board-
room changes in November,

1980, with the result that Mr
L. J. Holliday, a Laing employee
since 1947, was appointed chief
executive with effect from the
start of 1982.

Mr Holliday is to take over
the chair from Sir Maurice
Laing after the annual meeting
of the company on June 24. Sir
Maurice will continue in a non-
executive capacity and will
assume the title of “president"

Sir Maurice tells shareholders,
In his valedictory report for

1981, that “the board has been
greatly strengthened since we
made major changes at the end

of -November 1980, six new
executive directors having been
appointed. We anticipate widen-
ing the board further, by the
appointment of two non-
executive directors of wide
experience.**

The group is to submit an
ordinary resolution to the
annual meeting recommending-
that the maximum aggregate re-
muneration of the directors,
stated in the article of associa-
tion, be trebled to £78,000.

The directors add that the
maximum aggregate ordinary
remuneration was fixed at its
present level in 1978 “ and the
proposed new limit has regard
to inflation and to the possible
appointment of non-execiVive~
directors for whom this re-
muneration is Intended.”

Sir Maurice says that “ 1981
was a year devoted to re-
covery.” . Pre-tax profits last
year climbed from £3 .2m to
£6-2m- although profits in 1979
amounted to £11.3m before tax
and to £14.8m the year before.

IBA says it should run
cable television system

BY ARTHUR SANDIES

THE Independent Broadcasting
Authority says it is the right
organisation to be the govern-
ing body for cable television. It
has declared itself against cable
TV advertis ing o r anything that
“damages" ITV or BBC basic
services.

In evidence to the Hunt Com-
mittee-on - cable television* a
co mmi ttee required to report to
Government by the autumn, the
IBA Indicates the clear concern
held by traditional broadcasters
about the impact of new tech-
nology.

The IBA evidence says that
the authority does not wish to
stand against change, but “the
national interest demands that
cable developments should not
be allowed to undermine the
standards of nationwide off-air
public service broadcasting”

Initially at least cable
systems would be restricted to
major urban areas. It says.

The IBA suggests that to

maintain standards cable com-
' panles be forced to carry the
four D3A-BBC channels and the
whole cable system be subject
to regulation by. a supervisory
body.

“We; 'believe . that the IBA
itself has the relevant expert- .
ence, sensitivity and ■ know-
ledge to be the supervisory
body.”’

' On finance, a system whereby
the BBC gets a licence fee, the
ITV companies- advertising'
revenue, and cable lives on
subscription income is a good
one, it saySL

“Bisks of serious economic
damage, particularly to indepen-
dent local radio, and the local
press' dependent on local
classified advertising” are men-:
ifioned, but “Our concern is
that competition for the same
souree of advertising revenue
between Independent Broad-
casting and cable services would
be bound to diminish the range
and quality of programmes.”

Exemptions
from ‘dawn
raid’ rules
defended

By John Moore, City
' Correspondent

THE -Council . _for tire
Securities Industry; the City
of London's main self-regu-
tory body, has defended its
controversial - decision to
exclude agreed takeover bids'
from its new rules curbing
the lightning purchase of
large blocks of shares in.
companies. -

In ..Its annual report and'
accounts, published yesterday,
the CSI said the rules would
exdude takeover bids recom-
mended by the target com-
pany, although .“there are
arguments . both . ; for. and
against this course of action.”

The CSI justifies its
decision in three ways.

• The board of the target,
company should have time to -

'consider any offer and give
advice to shareholders. If the .
target company is recommend-
ing the bid, “that requirement
has been met-”

• A “ shut out Md^-f^fying-
shareholders no chance to
accept any other offer because
of the agreement of both tire
bidding and target companies
-^may frustrate a higher offer
in immediate cash' terms, says
the CSL But in- the great -
majority of cases, the board
.of the target company acts In

the best Interests of the com-
pany and ot Us shareholders
and employees:

• Unless exemption is given,
a merger desired by both sides
may never take place, because
the bidder may not be pre-
pared to enter a contest

The CSI introduced its.
rules' when it became clear'
that „ companies, mounting
takeover bids, were able to
make 'substantial share pur-
chases fn the stock market so
that control of a -target-^com---

pany could ..pass ..Into . ? .

bidder’s hands before It had
had any time to respond
formally to the offer.

The CSI describes a report
on investor protection con*
missioned by -the Department
of Trade and prepared by
Professor Jim Gower as “a
thought nrovoldug discussion
paper. This has bad the effect
of stimulating the City into
useful discussions . on funda- .
mental issues regarding the
supervision of the securities

market”

The CSI does not respond to
specific negative points which
Professor Gower raised about
the CSL

BP petrol up by 7p, more rises possible

BY SUE CAMERON

BP. OIL, the third-biggest petrol
- company in the UK, put up its
pump prices by an average 7p
a gallon. at midnight last- night
in an attempt to. stem the losses
it is malting on its refining busi-_
ness; . ....

It warned motorists that it
will raise prices by a- further'
2p to 4p a gallon if plans -tv
add ad extra $2.50 to the price ■
of North Sea marker crude go
; ahead. - - • --

Shell and Esso, who together
lead the British' petrol -market, :
are expected to follow BP Oil’s
lead -within the next few- days.
Shell said yesterday that it was
merely trying to -decide “^when
-and how- much” to raise its^
prices. . '• • •/

' .BPs move will take average',
petrol prices' at its urban, sites
from about 101p for a gallon qf
four star to about 169p.~ III.
country .areas, where prices are '
already higher than in - towns
.and cities, the average increase'
is likely to be nearer 6pa gallon.
BP expects rural prices to go
from about ,166p or I67p to
between 172p and l73p.

The company last night
stressed that It needed- average .
prices to rise to 176p a gallon -
-before it would- start -to break
even. It insisted that this round

of increases was not .related to oil and petrol, would probably dedsion to end almost all price talks with BNOC. The company
the British- National', Oil Cor- go up-by.afcout 2p a-gallon. support for its dealers. As a is. thought to have said that it
portatkru’s proposal to raia? the — BP 03 -has forced tiuxmgh its result, Texaco’s pump prices wSfl, reluctantly go along with
price -of... North . Sea marker latest price rise not by increas- rose'by an average . ..of 7j3 a the proposed -price incre^e — sf
crude from ..§81. to -$83.50 a ing wholesale; prices but by gaHbn to about l«9p. oa Monday tire cmynatiog ag rees no t .to
barrel - ■. - v. catting thembsidies ft has 1 been wight. ■ •„ institute a further $nce nse

cutting the subsidies ft has been night.

institute a further price rose

“A S 2 J»»imrel trade in- OtamriM Mma the oil

crease wOTid be likely to lead general a*- aM BNOC <wer tte BP

to farther -product- price irises, ‘* ea ^ Ban S^J s proposed J2.50 increase in the _i>dieves crude, prices

possibly oh all products,- right ■ spec *^ : price of North Sea crude. «ei JffjSL -tnif to

asms* the board,” BP : BP: has, mde,it -“P™ ***

. If the whole of the:- crude rec ® v ™ 6 v . dear that.’ at/does .not tiahk ail >”7 - ■ . ~ - ,

increase were placed on :petrol,-- The. subsidy for- retailers in product . prices - warrant .an [: has ;not w

pump prices, would probably ro . towns and ; dries— where, com-.- increase in -the crude- price; at the csrperaewn, .-amxmgn . it

across the "board then , all pro- _compzny-;£l.5m a month. .
ducts, including fuel <511, heating- : BFs ‘move foHow& . Texaco’s

tiOnbeibretlie end of the week, were “some points r'of
Shea’ has'.: already' sfertetl. .sl^i to be resolved.”

Oil companies surprised at increase in deliveries

( BY SUE CAMERON *..■

MAJOB OIL compand said'
' yesterday they were mystified .
by official energy ' statistics
showing that the volume of
UK petrol deliveries between
February and April this year
was 4 per cent higher than-.

" during tiie same 'period- last
year.

The provisional figures,
released yesterday by the
-Department - ot -Energy, Indl-'
cate that 4.75m .tonnes of
petrol were “ delivered to

garages compared with 4.57m
. tonnes .last year.

.-The oil companies ~ have
always, insisted that petrol Is
largely “price Inelastid” —
mpfli jing that the voltmressokl
are not much affected, by
pump prices.

Shell and Esso - expressed
. surprise, at the figures. Shell
said it :d!d:not' think the. long-'
running price ~ war at the
'pumps would have-led to an .
increase ~in- petrol deliveries

of moso .'titan 2.per cent "
But BF ; OIL which last ,
night Increased Us pump-- ,
prices, said the - rise- in •
deliveries Was the .result of.
cheap pump prices; It pointed .
out that last . . November
average 1 pomp prices were
about 172p a gallon but by
the middle of February this
year they had slumped, to
155p- . * • , ; "

- The department's _ figures "
show that, overall, the - UK -

used L3 per cent less energy
between ’ * . February . . . and
April this year tha n' - in ' the
‘ same period last year. Coal
'.consumption' fell by -6 per
'cent, "fhe- use .of natural gas
rose by' 2.3 per cent and
overall consumption" of "dil re-
mained the same.

Production of... Indigenous
primary fuels was 3J8m
tonnes- of ..coal '■ equivalent
higher tirtn last year— an in-
crease of 4.1 . per ceatu.

Sheika facelift reflects new managemeiit approadi

A ! -NEW" RANGE of Sbeipa
light connnercial ' vehicles will
be launched by Freight Rover
later this mouth' in what is
more -than a face-lift operation.

Joha Griffiths tooks at a shake-up in BL’s comniercials operation

per cent. . . 7

“We have not lost -a" single

entire three-storey facility.

A number of other cost-

to 98,700.. But the -UK manufao-
tatfers' share was -farther.

vehicle ag ains t gross lime rate saving measures have been, depressed by a rise- in Japanese

svtuur . „ .. ** .... - • - j ■ -r : l Avun 1 R OR R

manaeement has snent mudi ' for 18 months./ We. now hit implemented. Inventories have
tune togg the Sum about tEfiSHE'*" "f SL=JESK"i2!

imports’ share from 16 to 25.6
per. cent Sherpa sales feitt 42

? rthof its cars busings -duction. programme dafly” said per cent Preproduction proto- per cent from. 14,702 to. 8,540.
Mr Gilroy. £«■ h-LS®

SiTfl? taSk ot toii ** GUr »sr- ' "iE'-B'WiS te

nearly two years ago, the over-' The new Shetpas .win be the ^

haul of its less glamorous light : first really obvious, fruit of the
commercials operation has decision to remove light com-

gone almost unnoticed: - : : inercials : from : what ;■ JKr- Gilrpy "_^ e S herp a _fon*ra^d.by five

Frei^M Rtfver^was -formed a describes as ” an afterthought ” ra°nt&s^_^d^says_ Mr cairoy.

mouth after the Metro first of BL's volume vehicles bust saved S 500 . 000 -

went on sale. In line with Su r ;hess.

Michael Edward es’s poHcy of They account for a substantial

greater autonomy

TnaniTf ar tnring companies,'

BL's part of the £30m being invested

up to 1983, aimed at reversing

'The shake-up - hasr extended
beyond the Birmingham plant.
A year ago, Freight Rover bad
a network of 320 dealers. There r

became a separate unit, a slide in Sherpa fortunes in the
responsible for its awn pro- .face of stiffening competition,
duction and marketing, within particularly from. Japan, and an

Even before the new' range,
the signs ‘ for r ev i val are
encouraging: Total .sales in the
Sberpa’s sector' 'this, year are-
running 18 per cent ahead of
1981, ''although' . nnderflyiujg
growth fis pthbdbly " ' lower
because: -ot_ a -major, campign
by Ford for its Transit in
January.

Sheipa unit sales have risen

are now 350. But the net gain by 26 per "cent to 3,133, although

the Land Rover group.

Mr Tony ’Gilroy, previously quality."

admitted poor reputation for

of 30 disguises a total of 80
new appointments. A perforzn-

maiket share fifg Hspn by only
about 1 per cent to 9 per cent.

product planning chief for BL Also, £10m has been invested - replaced.

ance monitoring programme led The new range wili take Sherpa
to . some 50 . dealers being into un exploited parts of the

Cars and responsible for bring- in a new paint plant Started
ing Metro into production, was last August the first phase was

sector^ while . next year a 3.5

commissioned at Easter, three

made managing director. commissioned at Easter, three that “the decline has been

Since then, the work force months ahead of schedule. The halted.”
has been cut by 52 per dent to second, involving final colour One reason is" the- depressed
1,200 and there has been no facilities, will go on stream later state of the light commercial
industrial dispute. Measured this year. The jjlant; says Mr markets." From- 118J26I sales in

Since then, the work force "months ahead of schedule. The
has been cut by 52 percent to second, involving final colour

Despite the radical nature of gross tonnes verson Will plug'
the surgery, Mr Gilrpy says only . another large market gap. The
that “the decline has been range currently stops at 2.5

industrial dispute. Measured this year. The JBlant; says Mir
in terms of output per worker;: ^Gilroy, will not have a single
productivity has risen 'by " 27 production operator in- the .

that “the decline has been range currently stops at 2.6
halted.” - ' tonnes. ■ ■

One reason is" the . depressed Export projects also appear
state of the light commercial to be improving. For example,
markets." From- 118J26I sales in marginal sales in Spain lost
1980. the UK market last year year, expected to be 100-

plunged- by nearty 17 per cent vehides, were 1,000 with 1,500'

forecast for this year." ~j m " '

- *Chft biggest ctoud tirat had
been - hanging over- Freight
Rover — and which led- to Sir
MMiael wtimiag last- year that
“the whole future of Freight
"Rover anight have to be- re-
Viewed "i- has for the moment
disappeared.

- That was the Japanese agree-
-snent last autumn to restrict
fight commercaol sales in tiie
same manner as cars.

"Without that, Mr Giilniy ad-
-mits, it would have been un-
likely that Fre^bt Rover would
" have's future;

Even now, the amount off un-
utilised capacity at Freight
Rover shows Ohere " is a long
way to go. Output is 300 a week,
/against a maximum' 900. Mr
Gilroy has few illusions about
how quickly 5 £ can. h^tpen.
“We cannot expect to- tadHe
Ford head-on— it has had 40
per cent of th e-market for 15
■ years;-

“Anyone who- believes the
1980 level wild- come- hack
quickly is an Optinnst. There is
fikedy -to be oidy a -grad ual in-
jcrease.In .total; <here'is'stttU
far too much capacity J?. •

m'.

*22gajK-

f m

2 >:v ; :-vv if is- ,

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Sv'*s. s m

: ■ j .v,-*h <..to 'm

A blueprint can be quite an anomaly. At least
where bearings are concerned.

It can seem to confirm the popular belief that
all rolling bearing are much about the same— a
few lolling dements in-between a couple of rings
and a cage of sorts to keep'iHem. apart, or maybe
together, and varying Jitfle except in size. '

Which is a half truth. And - a iong^ v&sf tan. reality.

-*T I vl ( IT f Looked at closely, the

same blueprint can reflect
- . - . # ^complexity of know-

- how, with ball and cylindrical and taper bearings
all put togeffier in a^cargearbox for instance.

Which, in turn, is a step nearer the truth that
the strength of bearings is often in their differences.

This brings us to a dimension you can’t see in
. the drawing. Modestlyknown as application en-
gineering, but based on four criteria that are far '
from modest. ■*

HistonSKFcompetracfehiaiinctogeomfi^ fctTgrinft ideal r ntimg gnd appfe'
cal bearing world where tug eneigy savings can ' cation' desjsu only made possible bv an mSi.
depend on atenth of a thousandth of a milliinette. ed programme of bearing types.

Secondly: on 75 years 6ffiddaq?enence, accof ABofwihchistheeytTa dmifm^n r>L itTlt?nfa->

mulated by thousands of engineers and passedon ombe^gs-fromminianii^ -

to application sp ecialists t oday._ himdr^thsofagranmnetothose^SigSOO

Thirdly: on an understandmg-of the problems 'million times more. . -

Rsatthly; on onr ability to-- Aft

financial Times Tnursday June 3 19S2

UK NEWS

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#iei£

kept down year’s
rates by £200m

BY ROBIN PAULEY

LOCAL AUTHORITIES in Eng-
land and Wales kept down the
1982-83 rates, which were fixed

- at the end of March, by taking
£200m from reserves. Most of
■the money was used by authori-

- -ties which -had council elections
in May.

Figures published yesterday
by the Chartered Institute of
Public Finance and Accountancy
show that the 12 -inner London
boroughs took £57m — or £25
per head of papulation — out
of reserves. The outer London
boroughs took £35m, or £8 per
head. The metropoli tan districts
used - £30m (£2.65 per bead),
English shire districts £51m
£1.78), Welsh districts £2. 3m
(93p) and Welsh counties
SLUBm. (£4).

Balances

The English shire counties
which, like Wales and two
thirds of the English districts,
had no local polls this year —
drew a surprisingly large £81m,
or £282 per head, from balances.
That was partly accounted for
by the traditional- use by coon-,
ties of balances for capital
funding.

The second-tier London auth-
orities — the Greater London
Council, the . Inner London
Education Authority and the
Metropolitan Police . — ■ all .
increased their - balances by a
stal of £5Sm, or £8.65 per head,
'^lish metropolitan counties
jcreased their . collective
'•"lances slightly — ■ up by £44m
or 39p per head. The total draw
on balances was,£268m and the
net figure was £205m.

In inner London, where high-

rate bills have become an
increasingly sensitive political
issues, all councils except two

— Kensington & Chelsea and
Southwark — .raided their
reserves.

The city of Manchester added
£ll.Sm to its reserves, more
than compensating for the. fact
that every other district in the
area took money from balances.
Most other metropolitan dis-
tricts also took cash from' their
reserves, although Liverpool,
Doncaster. ' Newcastle and
Coventry all added. '

Anxious

The Treasury has been quietly
anxious for some time about
fears that an unaccounted £lbn
or more may be-in local council
contingency funds, quite apart
from the £lbn official balances.
But some councils, particularly
in London, are running with
lower balances than is con-
sidered prudent

Use of balances this year was
helped by unexpected housing ,
subsidy windfalls and -a more
generous grant share-out than
expected, - which put London at
the bottom of the rate rise
table. Domestic nates rose by
only 9.7 per cent in inner
London and by 128 per cent in
cuter London, compared to a
national average of 15.4 per
cent.

- But next year, when there
will he no elections in London,
higher rate rises will be needed
to restore reserves — and to start
building them up again ready
to subsidise a low rate in 1986,
the next London borough
election year.' -

Tourist
account
in deficit
for March

By James McDonald

BRITAIN’S travel account went
into deficit by £30m in March,
with overseas visitors spending
£l55m here, while Britons spent
£l85m abroad, according to
Department of Trade figures
published yesterday.

■ However, the UK travel
account showed a surplus of
£25m for the first quarter of
this year, because of a £55m
surplus in January and a
balanced account in February.
This compares with a £13m
surplus in the first three months
of last year.

The number of overseas
visitors to the UK in March,
at 620,000, was 10 per cent down
on a year before. They spent
7 per cent less than in March
1981 but more in the first
quarter overall. The number of
Britons going abroad in March,
at 1.06m, was about the same
as March last year but their
spending of £185m was 5 per
cent higher.

There were fewer visitors to
the UK in March from Europe,
but more North Americans
came to Britain than a year ago.

Almost 40 per cent fewer
Britons visited North America
in March this year, reflecting
the greater strength of the
dollar. This was offset by a 9
per cent rise in visits to Western
European countries outside the
EEC.

International Passenger Sur-
vey figures for the first quarter
of this year show that the
number of overseas visitors to
Britain, at 1.96m, was 2 per
cent more than in the first three
months of 1981. while visits
abroad by UK residents were 4
per cent higher at 2.83m.

Spending in the UK during the
quarter by overseas visitors, at
£550m, was 6 per cent higher
than a year before

Why the British are staying close to home

Co-op to restructure societies

BY DAYFD CHUROmL, CONSUMER AFFAIRS CORRESPONDENT

SENIOR OFFICIALS from the
Co-operative Union — the co-
ordinaring -body, for the co-op
movement — are to visit sM 160
retail societies over the next
three months to draw up pro-
posals for a radical restructur-
’• ing of the .co-op's trading
„ (1 . system. ......

The move follows the over-
whelming support at the Co-'

operative -Congress in Brighton

mis week for a move to slim
down the retail movement over
the next two years to create 25
large regional societies.

The need for such- radical
action has been . confirmed by
confidential figures, circulating
among societies at TesterdyV
final session of the congress
which emphasised the poor’-
trading performance of the co-
op over the past year~

The figures show that sales
have risen by only about 4.5 per
cent — a fall in real terms after
allowing for inflation — to reach
some £48 bn. Meanwhile, mar-
ket rime, which five years ago
. was at 7.1 per cent of all retail
trade,. slipped from 6.5 per cent
to about 6.1 per cent. . .

-The financial reserves of most
-societies have also taken a beat-
ing as a result of the recession
and High Street price war.

The derision to visit all retail
societies— not just those in
financial difficulties— has been
taken by the Co-op Union to
help pave the way fbr the
restructuring of the movement
along regional lines. The union's,
officials win discuss ways : in
which each society could
participate in a regional frame-
work.

CEGB ponders funding N-objection

THE Central Eleebtictiy Gener-
ating Board said yesterday it
was having difficulty in deriding
whether to help meet ’the
expenses of objectors to pro-
posals to build. Britain’s first
pressarised-water nudear re-
actor at SizeweU, Suffolk.

The statement came during
the second day of a meeting, al
nearby Snape, designed to
smooth the way for a public
inquiry into the project next
year. -

Lord SMso-e, QC, told Sir
Frank Layfiedd. . the Environ-
ment Department’s inspector,
that the board’s -constitution
required it to act to behalf of

consumers. The- board believed
-it was in the interest -of the
coasuxner that- the reactor be
built, so contribution to the.
expenses .of objectors was
questionable.

Documents to support the
application had been published
very early, Lord Siteoe said.
There -was irony in giving
objectors the chance to say they
would Eke ' money from the
CEGB to demolish the board’s
application, he said. No deci-
sion about finance had yet been
made, but * it would not be wise
for the objectors to assume
there will be a cootribut«m,” he
added.

The callers yesterday for pub-
lic funds for objectors were
headed by Mr John Howell for
Friends of the Earth, who said
that such funds “ might ensure
that in the battle with the
Gotha th of the CEGB, the ob-
jectors did have a fling.”

He said the CEGB and the
xnitiear installations inspector-
ate were frustrating the 'wishes
of the Environment Secretary
by not releasing some of the
300 documents, which form the
basics of the CEGB’s case that
the reactor would be safe, in
time to give objectors sox
months far analysis.

Gloomy forecast for glass bottle makers

BY MAURICE SAMUELSON

BRITAIN’S glass container'
industry is becoming too
crowded and. the disappearance
of one or more medium-sized
companies is. almost inevitable,
it. was claimed this week.

"Mr Tony McBumie, managing
director of United Glass Con-
tainers ,(UGC), the . leadflttg'
bottle manufacturer, ■ expects
further '** hard decisions ” about
plant . closures and rationalisa-
tions;

The industry’s workforce has
been cut by 20 per cent in the
past four years. Between the
end of 1979 and the end of last
year, UGC reduced its work-,
force from 10,500 to 7,750..
Employment in the container
division fell from 8,500 to 6,000.
The company closed two of its
eight plants.

However, Mr McBurrue* ruled
out any further closures by his

company this year and forecast
. that . next half yearly results,
due this month, would show, a
profit. He also claimed that UGC
was meeting its sales target,
although the Industry as a whole
was 3 per cent down.

According to a recent survey
by Euromonitor Publications,
United Glass had 28 per cent
of the £378mUK glass container
market'’.;.

Next name Rockware Glass
with 26 . per cent Redfearn
National with 15 per cent and
Beatson Clark, which specialises
in pharmaceutical containers,
with 6 per cent.

UGC, . owned jointly by the
Distillers ' Company and Owens-
■ -Illinois of the U.S., has been
adversely affected by falling
whisky sales.

- It expects .to win a greater
’share of its business from beer

and soft drinks manufacturers,
but, like other glass makers,
UGC faces long-term competi-
■ tion from cans, and plastic and i
paper containers. j

UGCs rationalisation pro- ,
gramme has cut its labour costs
from 40 per cent to 30 per cent ;
of its total manufacturing costs. ,
Yet these probably remain high
compared with unit labour costs
among some non-glass container
makers. ,

On the other hand, the glass
makers’ estimated' 15 per cent
overcapacity is far lower than
that in the beverage can indus-
try. Imports of finished bottles
and jars, now claiming about 8
per cent of the UK market, are
another concern.

The Packaging Report 1982 ;
Eur&monitor Publications, 18
Doughty Street, London. WC2N
2PN. 138 pages; £95.

Metal-coated sales reach £20m a year

BY MAURICE SAMUELSON

METALCOATED . FILMS ahd
papers - have achieved sales
worth £2Qm a year, almost a
fifth of the. value nf sales of
aluminium foil their main com-
petitor in the packaging field.

Mr Tony Broomfield, manag-
ing director of Camvac, a sub-
sidiary of the Bo water paper
group, claims that .metallising,
which has spread rapidly in the
past five years, has replaced

parts of the packaging field pre-
viously held by aluminium foil
UK sales of which are worth
more than £l00m a year.

Me tallising . is - ■ process in
which a .coating, usually of
aluminium, is vapourised in a
high vacuum and allowed to con-
dense on to film or paper.

Mr Broomfield’s claim high-
lights a controversy brewing in
the pac kaging industry about
growth of metallising and Its

threat to makers of aluminium
foil.

The latter strongly deny that
metallised materials can become
a genuine rival to aluminium
foil, which they say has
superior “ barrier ” qualities.

Metallised . materials are

increasingly used by the food,
cigarette and. wine trades for
decorative as well as protective j
reasons. j

.Technology, Page 12 I

THIS COULD be the year that
Britain's remarkable holiday
bubble bursts after surviving
oil crises and recession. The
summer of 1982 is bringing bad
news for the travel trade.

The number of Britons who
have decided not to take a
holiday this year, other than
simply staying at home, has
soared to more than one-third
of the population. At the same
time, those, taking holidays
have cut their costs. One
source suggests the cut is more
than 20 per cent in pound for
pound terms.

Once inflation is included, the
implications for the travel
industry are disastrous.

When, a little over a year ago,
the English Tourist Board asked
Britons whether they intended
taking a holiday, 62 per cent
said yes. This year that figure
has dropped to 58’ per cent
When the rest were asked if
they had definitely decided
against going away, only 29 per
cent said yes. This year it is
35 per cent

The shock for the travel
business this year is that the
recession has now bit foreign
holi daymaking. For a couple of
years it was almost conventional

Final trials for
Belfast airliner

By Michael Donne,

Aerospace Correspondent

THE SHORT 360 twin-engined
commuter airliner is moving
towards certification for service
later this year.

The 36-fieat aircraft, built by
Short Brothers in Belfast, flew
this week to the U.S. for final
trials, including propeller
strain, hot temperature hand-
ling, noise and final ground
handling tests.

Some 15 regional airlines,
many in the U.S., have placed
orders for over 100 360s, nr are
negotiating contracts with Short
Brothers.

m

Travel agents are suffering their own
recession this year. Arthur Sandies reports

wisdom that, come what may,
the British would go on foreign
holidays.

It is certainly true that while
other tourist generating coun-
tries, such as Germany, Sweden
and even the U.S. and Japan,
saw some shakiness in to ear
foreign travel markets, the
British continued to mam
abroad.

Last year saw a 9 per emit
rise in the number of Britons
going abroad for their holidays.

The signs are that all that
growth, and more, will have dis-
appeared by the time this year’s
figures are counted.

The 1981 boom is now seen as
the result of a series of factors:
the year started with sterling
strong; the recession had not
really hit the middle income
workers who are the backbone
of foreign travel business; tour
operators were still able to get
bargain prices from airlines and
hoteliers.

Now the pound has dropped

in value and the middle classes
are as worried and cash-hungry
as the blue collar sector. Foreign
tours are still being offered at
bargain rates, but tour opera-
tors have to face problems
caused by the Falklands crisis
and the prospect of a good sum-
mer in the UK.

u Holiday companies are
having a tough time at the
moment” says Hr Richard
Gapper, managing director of
Fickfords Travel. 14 They are
caught between rising costs
because of a weakening pound
and rapidly falling prices as dis-
counts arc offered to sell off
excess holiday space.”

The board’s holiday Intention
survey suggested a drop in the
number of people going abroad
from 23 per cent to 22 per cem
less than 5 per cent, but the
indications are that the real fall
for the package tour companies
will be much higher — perhaps
as much as 10 per cent.

This is partly because the

survey is one of intentions, not
actual derisions, and partly
because package tourism may be
bearing the brunt of the holiday
decline. Independent hohday-
making, particularly motoripg
and self-catering holidays to
France, seem to be enjoying
something of a boom.

But Pickfiord’s survey con-
firms the company’s suspicions.
Its 190 agency branches report
that toe average price of a
holiday booking this year is
£170 per person, which is more
than 20 per cent below last
year’s figure.

“The collapse in holiday
prices means a severe set-back
fOr many of the smaller High
Street travel agents whose major
source of income is a standard
10 per cent commission on
every holiday sale,” says Pick-
fords. “ They are now earning
less than a year ago for selling
each holiday, yet overheads
have continued to rise steeply."

If the news is gloomy for

foreign visits by toe British, it
seems even less cheerful for
domestic holidaymalring. The
board's survey suggests not only
that Britain can expect a three
.point decline in its domestic
traffic from 35 per cent of the
adult market to 32 per cent bid:
also that this fall will be con-
centrated on England. Britain's
hoiidaymaJring market mean-
while continues to Shrink
towards London and the South-
East as business from the Mid-
lands and the North withers in
the chill winds of economic
hardship.

In both domestic and foreign
markets toe hope now is that
the Falklands crisis wiE ease
and that people will suddenly
turn to the brochures once

more.

“ It is the late, late show for
August.” says Mr Sid Silver,
managing director of Cosmos
Tours. It may be more t han that.
'* There must now be a growing
possibility of some further
travel bankruptcies,” says Pick-
fords' Mr Gapper.

No wonder the Good Hotel
Guide urges its readers to check
whether a property is still in
business before attempting to
make a booking these days.

BA pilots leave cockpit but stay airborne

BY RAYMOND SNODDY

SEVERAL British Airways
pilots are this week com-
pleting a training course at
Gatwick Airport to turn them
into junior cabin crew.

This weekend the grotp of
22 co-pilots and first officers
will begin serving meals,
drinks and duty-free goods on
British Airtours flights to
Newark, New Jersey, Los
Angeles or the resorts of
Spain and Greece.

They will continue to draw
salaries averaging £14,000 a
year, despite being classed as
cabin crew grade I. a job
with a normal starting salary
of £4,500.

The 22 are the first BA

staff to be redeployed as cabin
crew from a pool of about
200 pilots who have been
declared surplus to flying
duties. The surplus is caused
by the phasing out of such
aircraft as the VC10 and the
drop in passenger traffic.

About 100 have been re-
deployed, some as computer
programmers, others taking
administrative or technical
jobs on the ground.

The decision to introduce
pilots as cabin crew has
angered some staff at British
Airtours. Cabin crew at first
decided' not to accept the
pilots, but the vote to take
industrial action to back up

the decision was split down
the middle and the retraining
programme went ahead.

Some first officers are
angry because they fear the
surplus pilots ministering to
the needs of passengers may
be able to earn more than
them.

As cabin crew, the surplus
pilots will qualify for extra
payments such as bar com-
mission, which can be as
much ' as £140 in a good
month. They may be also
eligible for extended-time pay-
ments for working on their
day off— usually about £80.

• Members of the British

Stewards and Stewardesses
Association at Heathrow
voted last month not to
accept surplus pilots as cabin
crew and threatened indus-
trial action if any attempt was
made to force the issue.

Cabin crews fear that they,
and not the pilots, have had
to bear the brunt of BA
redundancies and accompany-
ing Improvements in produc-
tivity.

“The cabin crews have
saved BA between £14m and
£18m. I have seen no figures
yet on what the pilots have
saved,” a cabin crew member
at Heathrow said.

A full report on all the visits
will be made to the union
executive by the. end of the
year. It will then deride what
further steps are needed.

At the same time as these i
informal discussions are being
held, an increasing number of
small 1 retail societies are
expected to merge with neigh-
bouring societies. Such mergers
have already reduced the num-
ber of individual retail
societies by about a fifth.

Officials from the Co-operative
'Wholesale Society and the Co-
operative Retail Services are
also expected to hold informal
talks about the possibility of
these two bodies merging. This
would .'create an organisation
with total sales of some £2.7bn
a year and would account for a
quarter of comp retail trade.

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FloaaeM~Tixxi&S " Thursday Juhe'3'1982

UK NEWS

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POPE JOHN PAUL U's visit to especially given the remarkable Ttnp T^r\r\P»’c T/ic-if Viae n-nrLarlina^ Trie nr\-ft£svlK-t1-;+x* , ->- they feeL progress should be ' Union and the- Presbyterian

Britain, which ended yesterday weather. But it is -hard, to •. • XAAV/ i VJ jJC o VloiL lido UliLH^lJJAitAA IA1.D JLiiXlyivJtvxllL^. made -7 for’ .example, making Church of Engiand)_bas already
was a guaranteed success before imagine anyone or anything else ''■-.• -’ .-' .i-*-."'- - /•' .- . i’r. v -_ easier njiSedinarriages between vpited..very narrowly to accept'

the Pontiff raised his lips from in a televisual society attracting ryfV trAmtffYnul rlrtOrfwAC CAX/C Tail TTiirorPinlAC * :•''•• 'Catholics and:..-.nonrCatholics, - the. covenant and the Methodists

the Catwick tarmac six days ago. not one tout a series of gather- WJJ - r*- twiicu. UU5111 do, oa.yo Attit. AxaigicaTtac. •• now account for 70 per will certainly do likewise.

The fact that he came, defy- ings ^th h^dcotm^ of ground / ‘ . v nia ^^;, ln some The Anglicans, not for the

ing Vatican advice based upon A Quarter of a million. ihe pgjjg still castigated contra- "it is' time "to re-assess the widely Catholic International Commis- ^®^f ses 'i. . . first time, are -torn. -A -jjeter-

Ihe crude measurement of poli- But what, it has to be asked caption as “ anti-life.” , He held characterisation of his non. T“ e oUier mined group,- which -sew- the

tical constituencies, cast over when the cavalcade is passed, praised- those who are commas- papacy as populist but impene- This commlanoh irooke nf nature of papal? auUiority Church- of- England's- fatal*- in -

the visit a cloak of simple ha^ been achieved beyond a sionate towards the divorced, trabiy conservative m moral possibility of AngUcans 81111 “ e U ^ e !3? ndlI !iw, 0f * the ekiHest possible alliance'

was a guaranteed success before imagine anyone or anything, else
the Pontiff raised his lips from in a televisual society attracting
the Catwick tarmac six days ago. not one tout a series of gather-
The fact that he came, defy- iofis with headcounts of ground
ing Vatican advice based upon a Quarter of a million,
the crude measurement of poli- But what, it has to be asked

The Pope’s visithas underlinedMsM
on traditional dogmas, says Ian Hargreaves l ;

he was a priest among his flock.

Polish - and translated In

He spake
greater at

^ ' with - the free churches. SO™®

in S iS£S?S£&£''«arSS

i- of female ministers, will raise

° IU1 new ujacnongs. jnjuu raui* . . • . engaged omy in miner mono-'- umer es>euuai steps m ioe. Britain- whirii manv -feel deenen

Perhaps it was this sense that homilies, composed by himself He spoke approvingly of the logtie or the magical : Hnk of^ ; road to niaty..would be Catholfc WAtwen iteTK>mina- M ^Pos^we obstacle in the

he was a priest among his flock, in Polish - and translated tn “greater attention to-promot- adulation with his people,' has recognition of the validity of tions . talks with Rome,

rather than a political leader enough time'for him to practice ing the dignity of women,” but reinforced not only the sense the Anglican ministry and, to these points, the Pope is- T* 1 ® lowrchurchmen positively

among his supporters, which his dictieo. were stark, rough again offered no thoughts on of ■ populism but the isolated eventually; .intercommunion. t0 have responded with an crave with, the dissenters

finally defused the impact of hewn offerings, delivered with how the church might contri- authoritarian nature of the t^Rt month the VmirsnV -nnen “ letv-tt^ahoirt it » atti- precisely to scupper' the

apposition to the visit

Anti-Catholic feeling may still a factory gate,
be widespread in some parts of He selected

the mettle of a shop steward at bute to thid process.

luoiontarian nature of the ,:Last . month the Vatican's- -open “ ltrftrthlk about it,” atti- precisely 10 scupper tne

iapacy. Sacred Congregation '-for : 1he tnde which came ais-'a pleasant ambition O’f Dr Robert Rnncie

, . , . . — t . c • Tfae incongruity, is that.it Doctrine of Faith, a kind of surprise to those, especially in th ® Archbishop of Canterbury,

be widespread m some parts of He selected content with an also more substantial given the should be this Pope, with these! official Vatican think-tank. dis= the free churches who expected for unity with Rome by the. end

Britain, but on the evidence of ey e to local politics— uneanploy- historic concept- of the >“ just views, who should be kneeling nrissed tiie report’s findings- in him merely to smile and move of the century. •

last week, it is for practical ment in Liverpool, war ami war, was his Coventry sermon at ■ the '.'shrine ■ of; Thomas 'a. large part as “not acceptable” on to the next question- The synod vote is certain to

purposes dormant. Mr Ian Pais- peace in Coventry— hut avoided against war, which he said was Beckett and inviting' British as Catholic doctrine:” • — Clearly however it -will be a toe extremely close and the out-

leys political base now exists controversy. ^ ... .now. “tetany: unaccpptahle. as a. churx&Jeaders to come to.RmneJ^The Popdrin his many, urgent Tong haul from Saturday's em- come protoabl '

only in Ulster, which was. cer- Some Catholic commentators means of settling differences to^ continue the church unity imprecations towards unity -Tiraces to inter-communten afld whether. a fe

tainly not the case 10 years ago. were pleased -at the relative soft- between nations." debate which reached a water- during his visit simply pushed with the Pcftfe bac? in -Rome. Catholics “can

The crowds, of course, were ness of ^the tene used in the In short John Paul did shed in March with the piiblica- aside the detail. “33ie Pope-is the British protestant churches vote for linlty,

much smaller than forecast. York address on the family, but nothing publicly to suggest that tlon of ihe Anglo-Roman savine that unitv is an' £feca£' must fiirn P To retnni tc

scupper

More moving, and- perhaps

papacy.

:ace in ^ovenrry— Dut avoiaeu against war, wnicn ne saia was Beckett and inviting British as Catholic doctrine!" • nearly however it -will be a ^ extremely close and the out-

ntroversy. ^ .now. “.totally unacceptable as a_ chunjJUeaders to come to.Rmatl^. The Popkr in his many, urgent 'Tong haul from Saturday's em- com® probably depends upon

Some Catholic commentators means of settling differences to^ continue the church unity imprecations towards ' unity -Tiraces to inter-communion a*d whether -a few of the Anglo-
sre pleased «t the relative soft- between nations." debate which reached a water- during his visit, simply pushed • wi (to the Pdjfe bade- in- -Rome. Catholics “can be persuaded to

Gulf Air

Now

Anglo-Roman saying that unity is atf teCscap-’ must turn their "immediate ..To retprji-to the Pope’s -visit,
' awe; objective, bat. by implica- - attention back loathe-'- tricky will this .gipup respond to John

tiob that perhaps he does--pot • -business of finding. uni tyiamong Paul’s yearning to end the “sad
•Understand himself how it wiir~ themselves. ' “ . ' ‘ y e a r s of divisional or, will they.

Understand himself how it wiir- themselves. ' ’ ' y e a rs of divisional or. will they,

be achieved,” said Mr . Martin . .. The debate iwer. the '"so-called scrutinise .the .homilies and eon-
Conway, an Anglican,, who -is covenant far unity reaches a dude that: this. Pope is hiinself
secretary to the British Coxmdl -dimax this summer, with votes an impassable barrier to Rome’s
of Churches Division of -Ecu-, at the end of.thi&.monflr in the unity with anything other; than

of council

lyiBg empty

The number oC conncu boasts
. empty Jor mote tharua year,
while local authorities tried to
sell them, trebled test year,
according , to a report., pub-
lishedLby Shelter,, tfae honang
presstn® group. . . . . "

• The report also 'Aays-Urit
'spending cate have reduced
the support- given to first-titue
.btryers local airihorities ; fo
an all-time iow. Only 6,009
loans for honsfrjnmiiase-were
expected in 1881-82, compared
10 30,009 two years ago- '

Out of a- total of- 24,000
council houses, which had
been empty for more t h a n one
year ' last- Jime, 4i500 irere.
waiting to be sold, an. increase
of 3,000. on the previous yesnr,
said -the report.. in Hoof,
Shelter’s bossing magazine, ;

Policies •••.. . . _ ;'v

.- ^the figures,, from Informa-
tion supplied by English local
authorities to the Depart-
ment of the-.. Enviropsaent,
showed .. a ;. number ■ ©f bRi^X
spots in the Goverument’s
housing policies, - said. Mr
Roger Matthews, one of the
authors of the report .

' “ Often the Govennnehf Iub
no policy' to deal ' with , the
problems revealed -by these
statistics," he said. “In some
eases its policies ' are making
things worse." For Instance,
what Is achieved by keeping
<500 council houses empty
for over' a 1 year so that they
tafiT soTtf- ^tatter rthdir
irented? This is a: waste of
'much-needed' booses."

'According - to the report,
.there were more than '630,000
empjy houses in England in-
1981. Most of them were in
the private sector, where the
Government had no policy to
get them back Into use, , the
report said.

Of the 24,000 council houses',
empty for more '.than a y<?tr>
to June 1981, 12,800 were in>
-.Greater. London.: .

rnnmTT

Rn

Im5mram?e

menical affairs.

Methodist Church and. on July 7 a very compliant partner pre-

Protestant church leaders, in the General Synod' of the pared

who met the Pope privately for. Anglican Church..

swallow Catholic

about 45 -.minutes in Canter-
bury, were able to do little

The United Reformed Church

doctrine more or less, whole? .
That is the ambiguity Pope

(formed 10 years ago by the John Paul has left behind in

more than list the areas where . merger of the Congregational Britain.

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BY GRAHAM SELLER

THE ■ESCALATION' of - hastill-'
ties .hi the South- ; Atlantic.-
contributedlO“a further contFac-
tion in business on the London'
Stock Exchange during May.

Turnover of £13.37bn in all
securities was £230m below the
April figure, which yas-ln turn
well ghort of The record "of
£22.73bn, established in March.

Another dampening factor,
was that, with two bank holi-
days during the month, there
was one fewer trading day than
in April. The' "Financial Tbnes
turnover index for all securities
eased to 409.7 compared with
416.6 in April, itself tfae lowest
since last September.

T)ie overall number of bar-,
gains continued to falL and the
total of 334,483 was 55,938 be-
low the April figure, but the
average value per bargain -
Increased by £5,153 to £39,984.

Business - in gilt-edged
securities, showed only a modest"
fall of £39dm, 3.92 per cent,, to
£9.5bn. A’ ' decrease In ' 'short-
dated stocks was partly offset"
by a slight rise in demand for
longer-dated ' stocks - and
irredeemables.

Ihe apparent failure of the
various peace initiatives and
continuing military action in the ..
Falkland' Islands. kept attention
away from the two main invest- -
ment sectors throughout the
month. The Financial Times

STOCK EXCHANGE TURNOVER IS MOVING-

Monthly Averages 1967=XJ0

MORE than a ' qtiarter of
Britain’s blind -people live on
their owm «ver sr third bare
an income of Jess than £2.000,
ay ear. barely a. third of thoscr.
of working age have a job amL
about balf are- over 75. .. .

These are ' sdme of the find'}
ings of a survey into the}
circumstances of blind peopled
carried out for the Royal
National Institute for : .the:
BUnd by three : market reL
searefa companies and suia-^
marised in " today's Mew'-

Some- people’s . ciretmi-
stances were particnlarty diffi-
cult. A bfind lady, confined
to a wheelchair, had to look
after a mvmany handicapped
daughter in her forties. .
90-year-old woman, lame anf
blind, was living with an- 85-j
year-old friend - -with fallingr.
sight. ' • ' : -.i

Low incomes were the mest*
.obvious -problem.. Only 4 pei^
cent had incomes of £8,000 'ede
’ more; more tirin' half earned^
less than £3,000 a' year.

• The majority of those ques^
ttoned. had a car available?-?-:,
in most cases. .at. least oneeal
week — and 87 per cent had?
access to a telephone. -. A

Wftp ore . Britain's. . Btinc£
People? Royal National Jnsti-
tute for the Blind .Gteat Port-
land Street, London WGL Price

WmfflGRHKKIi

- — DflOOWTSaWES ■— UlSffiUniES

1980 1981-'

-1982 ■

Government securities index
moved between 69.41 and 67:67
before closing the month 1.5
points higher at 68.20, the
sli^i tly' firmer tone owing much
to' hopes of lower U.S. interest
rates. ....

Equity turnover fell £120m.
±57 per. cent, to £2.4ton, and
the ■ number of" equity bargains
also::siiowed a fall of 51,345 to
241,774. the lowest so far this
year.

The Financial Times turnover
Index for ordinary shares fell
to 439.5. ; r while the Financial
Times indUstrial ordinary.' share
index finished the' month' a net
12.2 points higher at 587-3,
having touched .-500.6 oil the
14th.

Renewed weakness in the
bullion price, down $38 . to
2324 per ; ;puncer resulted in
another poor month for ' gold
shares.

r<Tj'

•C --

• '" ; 7 . ,.-<r

aUA.1

Category

British GorL and British ~T
Govt. Guaranteed:

Short dated (having five years
or less Co run}

Irish Govt.:

Short dated (having five yean
or loss to ran)

UK Local Authority

Overseas Govt^
Provincial and Municipal

Fixed Interest stock, pref, and
.r.pntf. ordinary shares ,
Ordinary shares . :..

Average of all Securities

Value of all
purchases %
& sales of
. - fin total

5J5Q&0 41.2

■ Avenge Average Average

Number % - value : value per number of

of. of perday bargain bargains

bargains - total fm • £■ per day-

cr . .‘MM a.

l 4.9

2J7I

07 . •

2.6

2^38

08 1

. - 1 — tbev^kts i momribetureir
" of Industrial Suction Cleaners^ ; -
Bay St Edmunds, Suffolk 0284 ©163

-2A&3.1

-CL37Z0 1000

334,433 10QJ>

11

Jlttig'

^82

[ «mfe er

°Ullc;J

ses

jnfnrfc

.^.5

Kni-iron
of

said ^

iTCS. frnrji

: ed ,* s*&

Hie

BUfllbiT

fit'* Go\,
Policies. .

"<b“'r',n7n 01

ralJlj

5oUcits a-t mS

Jff- f ‘ ,lr insuj

.Oievfd hv fcpa*i'

□cil W-***
i year

i«!d r
his s - .. ..
ed hoL‘»rs."

1 ? in
• fjinn
i5ws i». F.nalaad^

£ of i*. ci fcw , (
r* W'inr. vhm ft
it had no pniin ,
back 3Rjn uf€. it

1.000 ri
morr

W. r_\

5nrinn

^ to*

/hai fr

Way* J,

*!»>• rv^

’’an h 3 u£

•i^i! hfltc.
■ ,, -3Ti 3
i’Olft 'j**, .

blems

lind

slighted

an s wiani 1 : •
tint! **-• in#*
on*r •* Jh.'rf 'S'
tii !»'- •:- i r £j
eiv a > f

3 CP !»: '<■ :
are ;?ht 73
o win:, of >5?

CPs v.f I: : • n fl
It for !h»- fa-
ins! ::u v far fe
thrr- Tsri-; r
apj!!'*-' “?■

5C j Mlay't Sa

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UK NEWS - LABOUR

Off-shore

. ^ore th/' 1 W

lmohori^" s '5

• £**« >4 n s

STQUp e boijjU

** ok* ^

-xrjft

rssr£!i

a ** ,f al nf ‘

>7-4$

• funr - 1 .vw ®*

h** *"K 3n in ^
1 ,h ^

rr D"rt in

union work’

RnandaJ Timas Reporter

TRADE- UNIONS recruiting
offshore production workers
. in the North Sea are to com-
plain to the TUC that
companies are not following
agreed procedures on access
and recognition.

- Unions claim tint they now
lave to wait too long for
gaining aeeess to the plat-

- forms, six orseven months in
some cases, and that two
Icecent claims for limited
-recognition after snbstantial
votes in favour were rejected
_4y the companies c onc erned.

. . Access to rigs and platfotms
is governed by a memo ran*

■ dnm of understanding drawn
.up in Ig7ff between the UK
-Offshore Operators* Associa-.
tlon, unions and the Depart-
ment of Energy* giving the
unions a -light of access. But
in reality' access depends on
the discretion of the
companies.

Recognition follows a'
lengthy two-stage procedure
agreed between the associa*
tion and the Aberdeen-based
Inter-Union Offshore Oil
Committee.

" After a meeting earlier with
the oil operators’ liaison panel,
Mr Campbell Reid, secretary
of the fnteranlon committee,
said yesterday: “ There is
not much point in having
guidelines if they are not
going to be compiled with.”.

No comment was available
from the operators* associa-
tion, which is believed to
feel that the agreements are
advisory only and individual
companies have the right to
-make their own decisions.

Uneasy peace as dustmen call off strike

BY PAYtD <300DHART* LABOUR SWF

A CQUNCZL^S 518 dustmen are
due to resume work torfay: after
voting at a mass meetiag yestex-
day to end the seven ■^week-old
strike against the Tory-run
borough's - plans to privatise
refuse collection.

■' Union negotiators recom-
mended acceptance of a peace
formula after. eight hours.' of
talks with Wandsworth coun-
cillors last Friday. But agree-
ment could be' short-lived.

Union officials said the strike
committee would remainr 'tbe
campaign against privatisation
would -continue .and further-
strike action was still possible
if the council - presed ahead
with privatisation.

• The peace-formula amounts to -
a considerable clinriwiown by
the .two unions involved, the
National Union of PobfcEm-
ployees and the General and
Municipal 'Workers Union.

The only minor concession, is
that the unions will be given
details of the 14 tenders for the-
..refuse contract delivered to
the council yesterday. Names ;
of tenderers .will not be dis-
closed.

Wandsworth's director of
technical services has also .sub-
mitted a proposal for reforming
the direct labour scheme which
-wiE be 'considered along with
the private tenders at a council
committee meeting on July 15.
A final ■ decision will be taken

by the toll council on July 13.

The reformed direct labour
scheme recommends an end to
a number of restrictive prac-
tices and a reduction of the
work force to 166.' ' The unions
have not taken part in drawing
up these proposals and do not
consider them binding.

Mr Maurice Boaster, deputy
leader of the council, said:
•‘There will be major savings
for the ratepayers whether we
accept the new direct labour
proposal or one of the tenders."

The unions have, said all
along that they are prepared to
negotiate on improved produc-
tivity but Mr Ian Scott, a local
Nupe official, also emphasised
that “ we are not bidding blind

for our own jobs."

Mr Heaster said th.ey would
not how be bidding at all for
their jobs as tendering l/ad
dosed. “ When the unions are
given the details of the tenders
it will simply be an opportunity
for further discussion,” . he
added. .

Mr Eric Meecham, managing,
director of Pritchard Industrial
'Services, one of the tenderers,
said: "It is very sad that the
council is 'allowing the unions
to see the tenders at all.”'

There are precedents for
unions seeing tenders both in
Wandsworth — in the mechanical
workshops — and in Croydon.
But Mr Meecham, whose com-
pany already: has the tender for

street cleaning in Wandsworth,
fears that tenders might be u V3
as a bargaining counter with
the direct labour force.

'if one of the tenders is
accepted any council dustmen
employed by the private com-
pany have been assured com-
parable wages. The dustmen do
not have a no-compulsory
redundancy agreement with the
council.

Mr Scott said that another
part of the peace formula
included further talks on sever-
ance payments. The council has
already set aside £800,000 for
redundancy pay — more than
double the national Tnimimim
per man.

All-out stoppage warning by health workers’ leader

BY JOHN LLOYD, LABOUR EDITOR

A\ SENIOR official of .- the
National Union of Public
Employees, the major .health
service union, warned yesterday
that its members were, .dose to
withdrawing cover for all ser-
vices, including accidents and
emergencies.

Mr Barry Shuttleworth,
Nupe’s Midlands divisional
organisor. said that meetings
with stewards in the large city
hospitals showed a growing
frustration with the lack of suc-
cess in improving the Govern-
ment's 4 per cent pay ‘offer
through the present- campaign

Dockers leave

THE Liverpool Docks Labour
Board expects to make 280
registered dockers ' redundant
over the next two weeks, bring-
ing to 809 the number released
under . the special redundancy
scheme since June 1.

UK ECONOMIC INDICATORS

ECONOMIC ACTTFITY— Indices of Industrial prodbd^ manu-
facturing output (1975=100); engineering orders (1975—100);
retail sales volume -0978=100), retail sates value (1978=100);
re gis tered unemployment (excluding school leavers)' ' and
unfilled vacancies (000s). All seasonally adjusted.

IndL Mfg. ' Eng.. Retail Retafl Unem-

prod. output order voE value* ployed Vacs.

1981
lsrtqtr.
2nd qtr.
Srdqtr.
4tft qtr.
Oct
Nov-
Dee

1982
1st qtr.
Jan
Feb
March
April
May

99.6
99.0
99J
200
10L6
100.1
99 J.

8&8

8841

89.8

8941

9L5

904)

88.1

99.7 89-4

. ‘99.2. 88-3 '

9917 89.8'

.1005

98 -1064! 130.8 2£82 100

92 104.7 1345 2A82 89

104 105.5 139J 2,641 96

. 90 205.4 168J> 2,752 104

92 ' : 10641 147J8 2^23 99

94 105.6 168.-4 2,760 104

83 1044! 193-1 .2,769 108

10&6 141^ 2^17 112

92 107.0 1434) 2*12 U2

97 106.1 1374! 2,818 113

1064! 1423 2,822 111

106.6 2*56 110

. 2,872 107

OUTPUT — By market sector; consumer goods, investment goods,
intermediate goods (materials and "fuels); engineering output,
metal manufacture, textiles, leather and clothing (1975=100);

1981
1st qtr.
2nd qtr.
3rd qtr.
4th qtr.
Oct
Nov
Den
. .1982
1st qtr.
Jan
Feb .
March

r starts ( 000 s. monthly average).
Consumer Invst. intmd. Eng.

Metal

goods

goods

goods output

mnfg.

- 934!

88 J

117.2

84J2

75.7

93.1

88.7

118.0

84.8

78.7

93^

89.3

118.7

8&3

77^

934

9041

12L3

86.2

82.7

954)

90.0

124ft

374)

86.0

93.0

904)

121.0

86.0

83.0

92,0

904)

119.0

86.0

794)

91.9

9L3

1194

874

834)

91.0

9L0

1194)

864)

804)

93.0

9L0

1194)

874)

84.0-

92.0

924)

120.0

88.0

85.0

768 105

75.6 14.1

754) 14JS

754! 1L8

76.0 _ 13.4

76.0 14JL

75.0 7.7

73.7 14.7

73.0 1L4

744) 15.6

744) 17.1

EXTERNAL TRADE— Indices of export and import volume
(1975=100); visible balance; current balance (£m); oil balance
f£m): terms of trade (1975=100); exchange reserves.

Export Import Visible Currant Oil Terns Resv.

volume vouane balance balance balance trade US$bn*

h 2,114 +222 1052 27-90

26.73

1-1,470 ; +698 993 2335

+ 767 +230 105jL 28.43

28.21
28.07

+ 191 +291 99.6 23.70

+602 + 74 984) 234)2

+227 +205 100 J. 23-46

+641 . +419 100A 23.35

+348 ' +li» 101-2 23J23

+654 + 270 100^ 2337

March 1 }l$L

April ;•

JJgy -17JW

- Trade figures for March-August 1981 not available -becanse of
. Civil Service dispute.

1980

4th qtr.

126.4

1114

+IJS65-

1981
2nd qtr.
4fbqtr.

1324

126.4

+552

Feb

1184)

107 J8

+334

March

. -

10241 ■

April

104.7

+ 58

Sept

1294!

Vi&2

Qct

132.4

12?. g

+2 96

Nov

1344

m3

79

Dec

130.6

120.6

+335

1982
Jan .

119.5

123.4-

-132

Feb

1254

120.6

+174

Ml

m

advances DGE

BS

HP

MLR

%

%

%

6L8 ■

8.8

124 +1268

1,081

1284

12

F-TW

172

6-5 +4260

mmm

1,036

12

8-1

18.1

29.7 +5238

868

+226*

422

1280

142

172

192 +22*0

290

658

12

wrm

. 14.5

354 +1240

244

659

—

9.7

22.8

342 +2,458

334

706

—

^FINANCIAL— Money supply MI and sterling M3, bank advances

in steriing to the private sector (three months’ growth at annual
-rate); domestic credit expansion (£m); building Societies’. net
.inflow; HP, new credit; an seasonally adjusted. Minimum
lending rate (end-period).

i 1981
Istqtr.

2nd qtr.

3rd qtr.

4th qtr,

July
Aug
Sept
Qct
Nov
Dec
1982
Istqtr.

Jan
Feb
March

April

INFLATION— Indices of earnings (Jan 1B76=10O); basic
materials and fuels, wholesale prices of manufactured products
(1975=100); retail prices and food prices (1974=100); FT
Commodity- index (July 1952=100);' tirade weighted value of
sterling (1975=100).

Earn- Basic Whsale. FT*

*wg** matls,* Tnnfg -* RPI* Foods* eomdty. Strlg.

- 4.7
74!

20 J!
17^

20.4 + 460
+ 479

+3,132
+ 856
+1,103
' +14,73

' +1,599

• 65
203

967

356

347

264

437

642

657

2,101

654

691

.756

“ 1981
Istqtr.
2nd qtr.
3rd qtr.
4$hqtr.
Oct
Nov .
Dec

Istqtr.

Jan,

Feb-

March

April.'',

May.---

214.1 238.9

219J

2384

2194 ■

-294.0

277.0

245.07

2244

299.1

278.8

260.S3

229.2

285.6

248J7

227^

303.7

282.7

259-12

229.4

3062

- 28&5

245.79

230.4

308.8

288^

248^7

234.4

31L6

297.7

242.40

232.9

310.6

296 J.

252JM

234.6

310.7

2972

341.77

2354

313.4

299.8

24240

2374

319.7

302.6

24644

33749

seasonally adjusted.

261456 1014

97JB

90.6

89.7
882
90 J.

91-1

91J.

9L5

90^

904)

of selective action.

- “I nuever thought it would
come to the point where there
was a possibility of complete
withdrawal 'of labour. But the
frustration being expressed is
such that .1 don’t know if an
emergency service can continue
much longer," he said.'

Support for the health service
workers from other groups of
workers continues to build up —
though many health service
union officials are reserving
judgment on the effectiveness of
sympathetic action until -they
see it materialise. The first of

two 24-hour strikes takes place
tomorrow, the second on June 8.

In traditionally mj&tant areas,
widespread action is planned.
A meeting of the Wales TUC
today is expected to approve a
call for a one-day strike by the
South Wales mine workers on
June 16 — a strike which is likely
to be supported by other public
sector, workers.

Mr Derek Gregory, Nupe’s
divisional officer for Wales, says
that seamen might try to stop
ferries on June J.6. He said that
most hospitals in the area had
been, reduced to accident and

emergency cases only.

Mineworkers in Scotland,
Leicestershire, Nottinghamshire
and Lancashire have promised
support either on the. picket
lines or financially.

Mr Moss Evans, the general
secretary of the Transport and
General Workers Union, has
sent a message to all the union's
full-time and lay officials,
urging backing for the health
workers.

The message says that Mr
Evans will be “using his
influence on the TUC General
Council 1 ' to persuade other

unions to take sympathetic
action. Mr Evans says his mem-
bers should not cross picket
lines, and should support
demonstrations in their areas.

Some 60,000 members of the
National and Local Government
Officers Association in York-
shire and Humberside are being
-urged to join their 6,000 col-
leagues in the health service on
the one-day strike on June 8.
The union said last night that
local authorities, universities
and electricity and gas offices
would be affected.

Shop stewards fear
British Rail may
shut most workshops

BY NICK GARNETT, NORTHERN CORRESPONDENT

SHOP STEWARDS at the Hor-
wich locomtive works in Lan-
cashire, which is threatened by
British Rail's proposed cuts,
predicted yesterday that the
railways board could eventually
-dose all -but a few of its 12
engineering sites within the
next few years.

BR’s plan would involve the
total .closure of Shildon in
County Durham with the loss of
2,600 jobs, the closure of Har-
wich, except for its foundry
with the loss of 2,000 jobs and
a partial rundown at Swindon.

The National Union of Rail-
waymen has given BR until
next Monday to withdraw its
closure plans or face national
industrial action;

Both the Harwich action com-
mittee and Mr David Young,
MP for Bolton East suggested
yesterday tbat a rundown pro-
gramme among the workshops
would be linked to the Govern-
ment's policy of . bringing pri-
vate capital into some of BR's
subsidiary activities.

Mr Young sard it seemed as
though part of the workshops’
activities- would eventually go
to the private sector.

Private money, however,
needed a quick return which
would result in the wrong type
of investments to keep the rail-
ways competitive.

. Shop stewards yesterday
circulated a document, signed
by the chief secretaiy of the
Railways Board and laying out
the role and responsibilities of
British Rail Investments
limited (BRIL), the bolding
company set up to onmduce
private capital into subsidiary
businesses of BR.

They said the document
dated June last year, indicated
that privatisation would be
extended much wider than BR'S
hotel and slapping operations
and into engineering work. But
BR said last night that tins was
a wrong interpretation of the
document.

The six pages of policy notes
for board members said that
subsidiaries for transference to
BRIL are Sea link UK, BT
Hotels, excluding. Travellers
Fare; and BR Hovercraft.

But it also says that “at a
later date, other BRB sub-
sidiary businesses or property
may be considered for possible
transfer to BRIL.”

It makes it quite clear though
that in all the paragraphs dis-
cussing BR subsidiaries, they
refer solely to Sealink, BR
Hotels and BR Hovercraft This
was re-emphasised yesterday by
British Rail.

.Afghanistan
• Albania
Algeria
Andorra
Angola .

Anguilla

Antigua

Australia '

Austria

Azores

Bahamas .

Bahrain

Baleariclsles

Bangladesh

Barbados

Belgium

Belize

Benin

Bermuda

Bhutan

Bolivia

Botswana

Brazil

British Virgin
Islands
Brand
Bulgaria
Burma
Burundi
Cameroon

j2340*£22£5

£Ut*?£9.80

£ii65-£mO

&95

£l&3fr £17-85
£22^ £2080
£21'06’£19j65
£293&£26£Q
£A45-£ 785
. £1O05£ 9.15
gl&a&S 1580
£L£90*£1&55
£^4&£ 835
££U5-£20.70
£1A60£17.15
35-£ &90
S15c0&£14L1O
£L&20 £l&75
£13i6fr£13,15
S2A&&S24J00
£2<M3-£23.10
£248e'£23.90
£2&46’£24.15

§2i3e£1950
£24£fr£2130
£Ur45-£10.55
^2380* £22.55
£l&e?£15£0

Royal Mail.

ft's not often you read about price eatstbeae days. Ana
here are 204 .

Wre done^ what can only be described as apadkage deal
with the aidines and aie passing substantial savings on to you.

TheieducaonsapplytoaHairparcdweights overhalf a
kflo, not justthe five Mo see used in these erampfes
For full details of the thousands of reductions, dontleave
the coupon on this page, get it up and away.

Paraguay

Peru

Philippines

Prtcaimlslaud

Poland

Portugal

Puerto Rico

Qatar

Reunion

Romania

Rwanda

Sabah

St Kitts

SLLuda

27.00
£244£r£2400
£22££r£17.15
£2Z£0’£243O
£^&75£ 930
£^&56-£ 9.05
£1545*£15.00
£iZiO-£1685
£2Z£6‘£27.00
§103d-£ 8.95
£L£«£16.70
£25£5-£22.05
£23£0-£212O
£23^0-^030

StPiene &MiqudongJL5e}0'£14.65
SL Vincent £19.40

Samoa 5gZ2&£36SO

SaoTome &Pundpe £]Ai&£1820

Gaza&KhanYunis £L3&&£12£0
GermanDem. Rep. £1033" £ 9,00
German Fed. Rep. 7.70

Libyan Soc People's ...

Arab Jamahiriya £JJ3&£1035

Ghana

Gibraltar

Greece

Greenland

Grenada

Guatemala

£JA30-£1385
£JZ£3£ 830
gJ033£lU95
£JA£&£13A5
£Z3£&£22J55

Liixembouzg

Macao

Madagascar

Madeira

Malawi

Z93£ 7.50
£Z^S& £21.15
£2233 £2625
$J£m£ 9.15

Sarawak
Saudi Arabia -
Senegal
Seychelles
Sierra Leone
Singapore
SolomonlsJands
Somali Dem Rep.

££A?3£20.70
£JLZ40*£163O
32j&G3£1620
£2430-£23.4O
^1633 £15,15
£2480-£19.5O
SaaSO £38.00
^33£19J80
r£2335
r£ 9J05

Dominica

Dominican Rep. ZJ33&3Z12J55

EastTHnmr £2ZrS0-£27.O5

Ecnadac §^£2125

Egypt £1A00-£15.1O

HSahadm SJ683S15.15

EqmtarialGmnea £]£3&£13£5

Ethiopia £!&4?£1&00

Faraefclands £^fi30 m £ 890

Em £2&9 fT£S

LaoBecple's
Dem.Rep.
Lebanon
Lesotho
Liberia

xtigcL jxepublic

Nmfolk Island

TlT

_ r£U45- .

Notsyay

§2&i&£l9£5 Oman

£JA£3£14A0 Pakistan

S2585-E25.40

gl48S-£1440
S3&W£3545
£JSX6Q-£ 886
5205S-£1735

*wniiwau £1&9&£17J?5

mi^.-xsj . Panama ^20*95’ £20.05

beria £J450-£153O PapuaNewGuiaea S2&9&S2520

ToMerK^,P043FREEPOSi;PostalHeadqiiateisBmIdii^IX}tDC^^

Orphone Tdfidata 01-200 0200.

PleasesendmeyourlatestOvasesPtoGui^ ’ e/isi/2141'2

Name ~ •

1 Company

Aflrbraifi

UgCUfliU

United Arab
Emirates £J333£17£5

USSRiaEurqpe

' USSRinAsia ' £iZ60-£1625

Upper Volta £I&*&£i&65

tfiiguay £3035- £27.55

Vamiatn W03ft«fi7K

— £1&?0'£158O

Vietnam £2245 , £2980

Vngm Islands £1535? £1490

Tfeke Island §2&e35& , U5

Western Samoa §3&4&£3860

Vmmaj . — ■ — 1 t . n . nnn . n - i. w

Financial Times Thursday June 3 1982

Starting June 18

Only Delta offers you a choice of
11 nonstops weekly to America’s
most convenient gateway ;

Delta makes it more convenient than
ever to fly nonstop to Atlanta,. your gateway
to 80 other US. cities. Leave any day at
1215 and arrive in Atlanta at 1600. Or from
June 18 until and including Sept. 5, 1982, you
can take a Delta nonstop at 1010 any Tues-
day, Friday, Saturday or Sunday. In all, 11
Delta nonstops a week— more than any other
airline to Atlanta.

Fly in nonstop comfort on a Delta
Wide-Ride TriStar to Atlanta. There’s
room to stretch out and relax. Double aisles
to stroll. Superb dining and current-release
movies, too. (Small charge for headsets in
Economy Class. } That’s super jet luxury all
the way.

Save with Delta's discount fores to
Atlanta. Our APEX Fare is just 51372 re-
turn until and including June 30,1982. 51396
return from July 1 until and including Sep-
tember 14, 1982. These fares have advance
purchase, advance reservations, length of
stay and other requirements. Also ask about
Delta’s special discount fares for travel in
the U.S. A.

Delta’s Medallion Service Class is our
special business class for much less than
Krst Class. In-flight entertainment. Superb
cuisine. Fine wines and liqueurs. And more.

For information and reservations,
call your Travel Agent. Or call Delta in
London on (01) 668-0935 or (01) 668-9135.
Tfelex 87480. Or call Delta in Frankfurt on
0611 23 30 24, Ifelex 0416233. Delta Ticket
Offices are at 140 Regent Street, London
W1R 6 AT and Friedensstrasse 7, 6000 Frank.
furt/Main. Schedules subject to change
without notice.

Fly Delta to the 1982 Yforld’s Fait

Now to end of October 1982.

Knoxville, Tfennessee.

Delta is the official airiine of the
1982 Knoxville Worid’s Fain

A-DELTA-

_SyStet»i route hup

mmamsmus.

TECHNOLOGY

Machine research
is alive and well

EDITED BY ALAN CANE

BY MAX COMMANDER

ONE of the highlights^ of the
1981 rear of the Machine Tool
Industry Research Association
(MTTRA) has been the develop-
ment work on a microprocessor-
based screw - cutting control
system in which an electronic
cootroHer replaces the change
gears • to provide ' a more
versatile performance.

Cheering

Not too exciting, you may
say, but the system developed
bv MTERA for Dean Smith and
Grace of Keighley,, West York-
shire, has been successfully
demonstrated and sometime
t his year should be launched
on to the market.

At a time of economic
depression and, particularly,
when the UK machine tool
industry bas been in the
doldrums, the MTTRA annual
report makes rather more cheer-
ing reading.

For example, the Associa-
tion’s income in 1981 was 16
per cent higher at £929,000
than tiie previous year; the
acquisition of a Hewlett Packard
structural dynamics analyser
has improved its work on the

How to be
safe in the
robot age

THE ABERRANT behaviour
of an industrial robot result-
ing from a control system
fault is one of the new in-
dustrial Injuries hazards
facing the fewer people on
the factory sbopfloor.

This is just one conclusion
of a Machine Tool Trades
Association survey on the
basic principles of “ Safe-
guarding Against Industrial
Robots.”

Early stages

The report stemming from
consultation between robot
manufacturers and the
Machine Tool Industry
Research Association, lists
other possible hazards to the
shopfloor human— the jam-
ming of a servovalve; the
robot which cuts its umbilical
cord; the split of a onion on
an exposed hydraulic pipe,
and (probably very
important) a robot arm
which, because of a fault in
data transmission moves
through a larger than ex-
pected radius.

The report, while pointing
out that the British Standard
5304 “Code of Practice” on
the safeguarding of machinery

dy namic behaviour, of. madtine
structures; and the Association's
work on machine tori chatter,
resistance, vibration, noise.'
thermal distortion.- etc., has
been much in demand.

That is the good news, but as
W. & Vaugh an council chair-
man of MTTRA says: “No sector
has been harder hit than ours;
none has more meagre promise
of swift recovery. Some of our
great names have succumbed,
most have been forced to cut-
back on labour and resources.

"But although the companies,
whi ch we re formerly members
of MTTRA, may have changed
they have maintained and re-
newed their membership.”

Skirmishes

Mr Vaughan concludes by
saying that 1981 was a period
of savage skirmishes — the real
battle will be on us sooner than
we anticipate. Let no machine
toolmaker doubt that any of us
who do not move and move
quickly to prepare themselves
will not be with us for long.”

Other highlights from MTTRA
are:

W-

*

VV'-n.

• vV »

*

*/:• \
«V*V - v '

CV \

wSw

.mmmM

mmmm

iBiilipg

I

n mmmM

v-t

i HEfiES®

mwmmww&m:

1 y i < t

■7^

up ^

Sohring probJerretor industry
onaccnnoenoaiDess
NeieawwniiwrtariiiMiiiiuCvua
rb»iq|JlMiwlBipwrT^»Bzyp

Cr.

M|F

[ r 1

Jit’

ill

gg

A microprocessor manual data Input system for screw cutting, lathes wUch wss developed by
the Machine Tool Industry Research Association for a Yorkshire company •

1 — Work on a control system
for a range of special purpose
routing machines continued
throughout last year. Most of
the software and circuit design
is oomplete and a prototype is
under construction.

2 — ■Although much of the
work is confidential, one of the
projects was to design and
manufacture a machine tool
Spindle of 110 mm diameter
with a back-to-back conical oil
hydr o st a tic bearing at the front

and a cylindrical oil hydro-
static journal bearing at the
rear, driven through a three-
ratio gearbox by a thyristor con-
trolled DC motor.

The target specification was
to achieve a bearing arrange-
ment which could handle con-
stant power over a speed range
of 30 to 10,000 rev min --1-
But it was found that it was
not possible to design a bearing
that could withstand the loads.

Alignment
system
for wheels

A MECHANICAL wheel align-
ment system, for commercial
vehicles has been developed by
TI Churchill of Paventry.

Called the 1950 system, the
company says it is capable of
being used on; any surface and
unlike most systems on the
market requires no mirrors,
electronics or power. The
device can be used on wheels
up to 22.5 inches in diameter.

MTTRA after conskteratfon
has come lip with a system
which abandons 4he cartridge
design- in favour of a , ampler
and potentially more rigid

Full technical- details of this
and other MTTRA achievements
‘ are available in the Association's
report. Mr J. O. Cookson,
Hulley Road, Macclesfield,
Cheshire (0625 25421) Dean.
Smith and Grace is at 0535
605261.

Conveyorised
radiant oven

oven ..for manufacturers .of
small .components . ban been
designed by rllaywfck (Han-
ningfield) . of Cheimaj^j,
Esses, The Burette of modular
. construction can be ; produced
to almost any length with, oppo-
site heat zoifts of stainless steel,
and, dependent on the abdi-
cation, fYgT| incorporate one*- or
two ceramic plaque radiant
bitners rated at 1 12,500 Btu/hr.
More from Jim Sargant afCB45

Safety valve •?

A SAFETY valve for use nTtbe
hydrocarbon processing indus-
tries has been introduced- by
DM3 Bailey Biritett in West
Yorkshire.

The valve, known as
“ safeset” is * differential
piston, pDot operated valve
which can operate in a tempera-
ture range between -270 deg;C
to +540 deg C. More informa-
tion of 021-455 998L

* '■'**' . '■

t .

•ifi'. -

.w-i

Jv- >■.' j

^ -• f.v- .r-_ . r . - _ _ . . .

Perimeter guarding is one of the aspects discussed concerning
industrial robots in the latest in the series of Codes of
Practice from the Machine Tool Trades Association.

gives general guidance,
emphasises that the develop-
ment of industrial robots is
still in Its early stages, and
the guidance in the booklet
might have to be revised in
the light of future technical -
advances.

The surrey draws on the
conclusions readied by a
Japanese report In 1977. It
showed that about 10 per cent
of robotic accidents occurred ■
during normal operation but
the greatest risk occurred
during' programming, teach-
ing and maintenance. This was
confirmed by a similar
Swedish survey in 1980.

Hazards listed in the MTTA
report include Impact (some-
one struck by the robot or the
part it was carrying); Trap-
ping Points (either within the
movement of the robot arm
-or as it approaches the work
point); and electrical shocks,
burns or radiation, human
errors, failures of electrics,
hydraulics and pneumatics
and environmental hazards.

The" Machine Tool Trades
Association: " Safeguarding
Industrial Robots” is avail-
able from MTTA, 62 Bays-
water Road, London (01-402
6671). It costs £7.00 ind
postage.

are pfeasedto announce
the OTqintaienl cf James IVLPugl
SenforVice President and Director
otEiia^Eidiaqge.

All that glisters is not money

BY MAURICE SAMUELSON

SCHOOLCHILDREN collecting been putting metallised paper
aluminium foil for charity are wrappers inside cigarette
findin g that all that glisters is packets instead of an
not necessarily what they are aluminium foil-paper laminate.

looking for.

Silvery wrappers

One estimate, regarded as an
from exaggeration by aluminium

snacks, candies or the inside foil producers, is that 35 per
of cigarette packets may look cent of UK cigarette packs have
like the familiar aluminium “gone metallised.”
foil but are in fact a clever im- This trend is also likely to be
itation hard to distinguish at a followed in West Germany,
glance. where a South African tobacco

Although the aluminium foil company is reported to be
industry puts a brave face on installing its own metallising
it, it grudgingly recognises the facility in a West Berlin
growing competition from met- cigarette factory,
allising— a born-again process Jn Australia. South Africa
pioneered by Thomas Edison, and Britain, metallised film has
inventor of the electric light taken a large chunk of the
bulb. market for bag-in-the-box wine

Metallising is a process in packages, which have captured
which a coating, usually of a significant section of the take-
aluminium. is deposited on to a home wine trade in those
film or paper by vapourising countries,
the metal in a high vacuum and In Europe, there are no fewer
allowing it to condense oh to ■ than- 17 specialised metallising
film or paper. Edison observed companies, with three each in.
the phenomenon in the course the UK, West Germany and
-of- his search- for a- luminous France, two each in Spain and
electric element and promptly Denmark, and individual com-

Metaltising, be said,' had
“ dazzled many people with all
the enthusiasm of vigorous
adolescence.” But in his view
it was “ nonsense ” to see
metallising as a substitute for
foil. At the most, he said, it
was a valuable addition to the
range of packaging options.

REfCD

Refco International Futures, Inc.

Four World Trade CentetiySuite 6228, New York, New York 10048, 212432-3721
TRT 177336 HEFCO UT Greenwich, ]Dndon;SaoE^

patented it-

pa nies in Belgium, Italy, Fin-

In the past five years, it has land and the Netherlands,
established itself as a force to The three UK companies are
be reckoned with in the packag- believed to have built up a
ing industries of Western combined annual turnover of
Europe, Australia and South about £20m in the past five
Africa. years. This compares with th?

Initially introduced for its £100m a year revenue of the
decorative properties, metallis- UK's big three al uminium foil
Ing is now being used in some rollers, Alcan Foils, JBacofoil
applications where barrier pro- and Star Aluminium,
parties are also needed. It has The three UK metaUisexs are
been less successful in com-pet- Cam vac, the Cambridgeshire-
ing against the U.S. aluminium based subsidiary of Bowater
industry, where lower energy Metallised Films and Papers
costs have kept foil prices (recently acquired by the U.S. i
down. Denizen Corporation), and i

Metallised film is catching on Forth Textiles of South Wales,
fastest in France, where it has Mr Tony Broomfield, Cam-
been used on a wide range of vac’s managing director and an
flexible ■ packages for coffee, articulate campaigner for his
sweets, snacks, chewing gum, industry, claims that although
milk powder and yoghurt lads. metallising has partly created
In. Britain, a sizeable part of its own markets, “It could
the UK tobacco industry has eventually be a replacement for

aluminium foil,”

■ . • .fe. , — Much of the impetus for

Industrial Marketing metallising, comes from

Cnmmifniratinnc? Imperial Chemical Industries,
vummumcanonsf which supplies the bare

F e pi Pofre ster and polypropylene

§3 “In the long term,” said Mr

v? k fa] Alasdair Gibbs at ICTs plastics

& v and petrochemicals division,

A thinking ad ra rt km w stnti “metallising will take more
gu vcrusii^ ana more of the packaging
public relaHons service. market compeUDg^^h

FilVtMilihrnnkTiiffnsrrial sjuminium foil both on. .teeb-

London WtH 5 PL ' . 1716 "Minium foil industry’s

Tel: 01-496 8794-Telex: 897274 FMf. « ew by Mr Graeme

■ ' ' i n ■ ■ Campbell, managing director of

Alcan Foils UK

777e5e securities were offered and sold outside ffre United States.
This announcement appea/s as a matter of record only:

PfflUP MORRIS INTERNMlO

Swiss Francsiro.000,000

614% Bonds Due 1994

Guaranteed as to Payment of Principal,

Premium, if any, and Interest by

INCORPORATED

Offering Price: 10014%

SWISS BANK CORPORATION
SWISS VDLKSHANK
A.SARASINANDGE PR]

IM " UNIONfiANKOFSWnZHRLAND ■ CREDIT SUISSE

BANK LHJ UD “ GFWUPEftffiNT DES BANQUimS PRIV& GEf£VDfS

PRIVATE BANK AND TRUST COMPANY GRQUPEMENT DE BANQUIERS PRIVES ZUR jCHDIS

UNION 0FSW1SS CANTONAL BANKS .

Atiuritifig advertising and
public relations service.

First Midbrook Industrial

8B Georpe Street Marylebone. .
London W1H5PL

Tel: 01-466 8794-Telex: 897274 FMf.

June, 1982

•\

.- •Bnancial Times Thursday June 3 1982

13

IEHJE MANAGEMENT PAGE

EDITED BY CHRISTOPHER LORENZ

PRODUCT DESIGN

3.

styling is only

i^Ghristopher Lorenz launches a column on corporate attempts to combine
to ‘ 1 1 visual and functional design into a potent commercial weapon

vtSHEILA PICKLES and Alan beside the Herculean task fac*-- The designers at thecanfeiv
-V'ifopalian were locked" in. mortal ing people like Robert Blaich. ence were uncertain whether
i^^ombat “Surely" the persis- Another top delegate at the the same could he said of three
Topalian demanded, of designers' conference— The first fiamous companies which are
r^icfeles, “you must have a held outside the U.S. by the normally seen as model users-
Ij-flS jfstem. for. managing your. dfr Boston-based Design Manage- of design: Bang and OUrfsen,
s ign ? ment Institute*— Blaich recently Braun and Olivetti. Their

came the firm reply took over as head o£ industrial doubts rested partly on
- u --from the driving force behind ripsign for Philips, the mammoth whether the functionality of
^■jPepbaligon’s, .. one of the electronics multinational, these companies’ products
brightest British design-cum- where has speciality -‘has always matched up to the -pro-
marketing 'successes of the last always been seen as a poor rela- mise of their styling; partly on
five years. “Just intuition. I tkra of marketing, itself often whether they would fare as
know whether the product Is lost In the shadow of the com- wll in mass markets as in
slight or not." pany*s almost cultural commit- their existing, relatively ' nar-

-?!•£■ Aji oversimplification, per- ment to ‘ engtaeering and 'row niches (especially B and .0

-ri haps, but this confrontation, at electronics technology. • aiK * Braun); and partly, in

•K? get-together in London of . Top management at Philips Olivetti’s case, on the corn-
some of the world's reading in^ - ^ gradually come to recognise pony’s profits record until the
er-dustrial designers, epitomises fl, at excessive bias towards P®st few years, which has not
■v.-how hard it can be to- inject tecbnologyniriven strategies exactly been an advertise-
.^high-quality design into the tends to leave it struggling on Dteait «> r tf 1 ® claim that
products of today’s colossal, the losing side of the continuous d^gn pays dividends.

-I complex corporations. And it - battje - Japanese; it is p «"° Vitx f Olivettes

-* rPinpoints the all-pervasive con-, companies like Sony and JVC d^igu, admitted

fusion about what the term Matsushita which, in their dif- that other factors largely
“design/’ actuals means. Se^hiTsn^dS p£ explained Olivetti's recent burot

Top.alian, a ° English consul- ex^i^ce m balancing techno-

el^? 1 *' 18 4>ne of the few people logical - push,” market “pull "

■griifo.hflve studied extensively how desiam -

Sfesign. in aU its various forms industn2Q de51gn -
^iond functions, can be integrated
^tDiiito the management process:
iStfenns -Tike ."design briefings,”

" ■ *■* project teams ” and “ cor-

Pretty boxes

back into profitability — better
electronic technology, for
example. But his colleague
David Maxoni emphasised that
one of the main reasons Olivetti
had gained market leadership
■ . _ rj in financial terminals for banks

. 5 ; project teams «uu tvr exempbry streng^^w and building societies was the.

j^parafe audits” are part of his. th e J apanese sh ould faelp Blai cn attention it had paid to indus-
•^crveryday vocabulary. • trial design.

Pickles represents the other strating down the line The, designer's dilemma—

. ' extreme: a natural entrepreneur Philips P mt * ndu * t, £? d ®*S*. caught between trying to exer-
5**iwho took over a virtually defunct extends far beyond- its ^ corirou- c j se intuitive flair and having
^barber's business, seven years tional meaning. of just putcmg t0 influence the corporate cul-
‘-^go and has turned it into a, pretty boxes round; th i n gs tuxe by becoming an “organ-

*’ Thriving, : up-market perfumery right into ... the heart of the man "—was outlined

‘Enterprise - of international product He most also show that, most painfully by Jay Doblin.
renown. In the. catholic company.. as a result, it can be a key 15 one ‘of the world's

of a brick manufacturer and a factor in the commercial succ^s- experienced design con-

V^iaker of cigarette production of all sorts of products, both sultants and & former col-

rf^inachihery. she last autumn won consumer and industrial. . league of the famous Raymond

coveted Royal Society of Arts Blaich came to Philips from Loewy, who was one of the

**- award for design management. Herman Miller, a medium-sized first industriaj designers to set
• one of the reasons for U.S. furniture anl office systems up a studio in New York after
— Pickles’ success is that she has company with a strong commit- the First World War, and
imbued her staff of 15 with a ment to design as the corner- became one of the most influ-
thorough commitment to high stone of its presence in the mar- ential.

quality design — of the product’s ket Together with only a hand- FenhaMgon’s, Herman MfflJer.
innards as well as its appearance ful of corporate giants such as IBM, B and O. Braun and
(which is what most people IBM . and— until now— John OHvefti were oil exceptional
mean by “industrial design”). Deere, the agricultural mach- examples of design being
Yet her tiny company's inery maker, it has succeeded *' pulled " through the organisa-
penetratkm of a small, upmarket in making money out of pro- tion by top level commitment,
nithe was less easy than it might ducts which combine an attrac- said Dotolin. But in many more
seem. - •• tive appearance with the use companies it tended to be pushed

But her ••• achievement of reliable, often advanced up from below — a far harder

obviously palls in significance engineering. task. “Most of these pro-

After a decade on the administrative side of
films, opera, theatre and television, Sheila
Pickles took over PenhaUgon’s in 1975. when its
sales had slumped to £6,000 a year. “My instinct
was to save It; not just from total extinction,
hut also from, being ruined by hasty modernisa-
tion.” She moved to an old shop in London's
revitalised Oovent Garden district, and there re-
created the atmosphere of a Victorian per-
fumery, with the perfumes blended within sight
—and smell — of the customer. She has relied
on reviving old product formulas based on the
scents of English country gardens; the range
takes In after-shaves, talcs, bath oils, soaps and
other items as well as perfumes themselves.

-With help from a consultancy, Michael
Peters and Partners, Penhaligon’s packaging,
labelling, uniforms, carrier bags, direct mail
shots and other promotional literature have all
been carefully tailored to the company’s re-
strained yet florid Image. With its eye-catching

Hugh Routlodgo

burgundy house-colour, it has become one of
the main attractions of Covent Garden, as well
as a focus of attention in exclusive American
stores such as Bergdorf Goodman in New York
and Neiman-Marcus in Beverly Hills. A fran-
chise operation in Toronto may be followed by
others outside the UK.

“I knew we were successful when replicas
of our products started to appear,” says Pickles.
■She actually needed to look no farther than her
soaring sales and (undisclosed) profit figures —
this year's turnover should top £500,000. She
wants to keep Penhaligon’s small and exclusive
but there is always the danger that the growth
In competition could tempt her Into the elassie
trap of over-diversification. Pickles admits she
enjoys launching new products, but says she
knows that “you can overdo it” After all, she
muses, the mighty house of Guerlin has made
only seven perfumes this century.

grammes fail — they're smoking
fiascos after 3 or 4 years," be-
cause of lack of corporate .
commitment and other prob-
lems. he declared.

‘ The halcyon days of star indi-
vidual designers who were
strong on intuition had gone by
the 1970s, said Doblin. Except
with cosmetics, toys and a few
other products, designers were
having to work as part of a care-
fully controlled corporate “sys-
tem ” which is laden with
unproductive committee meet-
ings and volumes of heavy
manuals describing standard
practices and procedures.

Yet the designer should still
be the “corporate visionary”
pleaded Doblin. "The intuitive
process is the designer’s key
weapon."

The difficulty companies have
harnessing the individual crea-
tivity of designers, without
frustrating at. was amply demon-
strated by the experience of a
group of professional designers
at the conference. One after an-
other, they described their diffi-
culties in relating to the other
corporate functions.

Rather than being used as a
bridge between sales, market-
ing. production and engmeermg
(or development), on at: least
an equal footing with each of
them, they were usually sub-
ordinate, reporting direct to one
of them, most frequently mar-
keting. And since many of their
companies seemed to see mar-
keting as Httle more than seating
— working within a short-term
horizon of what the customer

would be almost certain to buy
next week — the designers natur-
ally felt they had inadequate
influence on the nature and
shape of future products.

One might put oil this dis-
satisfaction down to the over-
inflated ego of the typacahy self-
important designer. But that
would be to disregard the com-
mercial success of Herman
MHler, IBM and (for many
yeans) Deere, where designers
have played a key synthesising
role between other functions.

* Design Management Insti-
tute. Director : Peter Lawrence,
at present based in Britain, at
7, Stanhope Gardens, London,
S.W.7.

The Product Design column
will normally be published in
-the first week of each month.

ADVERTISING

Hotel guests— a
sleeping target

When are visiting business-
men most susceptible to ad-
vertising? When they are
stuck in their hotel rooqis
passing the time watching
television. With this idea in
mind Hotel Television Net-
work is offering hotels
completely free, an extra tele-
vision channel with a pro-
gramme which starts with
information about the hotel,
continues with a magazine
“ This Is London,” which
directs visitors to sites and
shops, and concludes with a
feature film. The programme
repeats itself six times a day.

But HTN is not just pro-
viding’ a service. It is selling
the commercial breaks in the
feature film, or rather Radio
Luxembourg is handling the
sales side for it, and also the
11 plugs ” in the magazine. A
30-second spot can cost be-
tween £4,800 and £9,600 de-
pending on the number of
hotel rooms. A 30-second
reference in “This is Lon-
don ” goes for between £1,000
and £2,000.

There are 7,000 hotel
rooms in London already
taking HTN and the company,
a subsidiary of Amalgamated
Estates, a property developer,
will become viable when it

has signed up 10,000 rooms.
Its full potential is 45,000
London hotel rooms of two
stars and upwards, but even
with 10,000 rooms it reckons
to reach 1.25m visitors per
year, spending an average of
three nights.

The operation is being sold
with some taste: “This Is
London " is as much a
genuine guide to the capital’s
sights as a pointed commer-
cial for advertisers, and the
feature films include current
hits. And all told the adver-
tising will be limited to
fifteen minutes in three hours.
Airlines, drink and tobacco
companies, restaurants and
tourist attractions would
seem to offer the most
revenue potential, but the
main beneficiaries must be the
hotels.

An experiment carried out
at the Penta Hotel included
a reference in the programme
to millibars in the rooms,
and sales through these
rocketed. Other hotels to have
signed include the Cadogan,
Londonderry, Lowndes, Im-
perial, Bedford and Royal ‘
Scot.

Antony Thomcroft

In brief . . .

• The Ford Cortina is actu-
ally stuck to the poster in
London’s Cromwell Road. It
went up on Tuesday and
should stay In plaee for four
weeks if Araldite is the glue
that manufacturers Ciba
Geigy believe It is. The car
weighs around a ton but only

10 retail packs of Araldite
were needed to bold it on.
After its London display the
car will appear in Birming-
ham, Manchester and Glasgow
during the summer.

• Two good years for adver-
tising are forecast by the
Advertising Association In its
latest quarterly predictions.
Advertising expenditure this
year is estimated to rise by

11 per cent to £2, 600m and
next year, aided by Channel
Four and breakfast TV adver-
tising could grow by 15 per
cent to top £3,000m.

Television is likely to absorb
most of the extra spending,
rising by 18 per cent this year
as against 13 per cent for the
press.

BARCLAYCARD

Parker proudly introduce a rather smooth
line in business gjfcs.

The revolutionary new Roller Ball . Ready
printed with your company name alnd logo. And
yours for just £L92 c 4< hi Dl/CD

(WeH we thought if 7 P.iy\KI\tK
you’re giving them away we should follow suit)

~ Tot a frMOjpy of our btcsrBusmessGdb catalogue, wnwro: Parker Pen Ltd.

(Dept. A ), Ne«haven,Easi SussekBW QAU. Or telephone Newhaven (07912) 3233

' (Ext- .150). Price quoted orel VAT and based on onierot 500.

CHANGING MANUFACTURING
STRATEGY IN THE WEST
THE KEY TO BEATING JAPAN

ROYAL GARDEN HOTEL,- KENSINGTON, LONDON, W8.
TUESDAY. 6tii JULY, 1982.

This one-day conference is organised as a sequel to a. Well-attended
seminar on Japanese Productivity held in London last year. The
conference aims to present European managers ' in manufacturing
industry with practical interpretations of Japanese techniques which
can be successfully exploited in the western industrial scene.
Speakers are drawn from European organisations experienced in
applying lessons learnt from Japanese industry.

The topics to be covered indude:

— Manufacturing Strategy— re-thinking strategy to achieve
corporate . objectives and evaluating the, company competitive

— Vrocess Technology — use of robotics, computer-aided design
and manufacturing plant configuration for productivity and

flexibility. , . . . • t .

— .Information Technology in manufacturing control with emphasis
: on minimum lead time and inventory.

— Organisation and Management Sty ie— ideas for bottom-up
dedsion making and problem solving.

. . FEES: _ .

BP1CS Members C12AM + VAT @ £18.00 = £T38J» ‘

Non-Members £140.00 + YAT @ £21:00 = £161.00

TUB (M includes lunen. refreshments and seminar deeumMtBtion.

Tha number of places is limited: experience shows BPICS Seminars are
BBneraily ovar-aubscribed. Early, application is adviaed and m any -case ■
should bn no later than 15th June 1982. DETACH HERE

The British Production and Inventory. Control Socmtjt

REGISTRATION FORM
Seminar SS86

Name

Position .........

Company. - - —

Address — — • *

Telephone No.'..

Changing Manufacturing S«wgy f* to B ^ Un9 Jap,B ’ '

kiamhin niuiuld ouo‘» thsir membership number ip claim tha benefit of
SSrSSnd fa! TSa numb^ is not .readily, eveilable. please telephone

the Seminar Secraary; 0Z79 723»*-

Name of dalegate(s). •

□ Plaaae invoice my company. • - ^

n Endosed Cheque lor £ to ewer toe(e) Ineh'dlnfl VAT,

Pima make dievuw psysbte to " BPICS Sominsr 553 8.

s -? d - 3 ™ •TOSTM £

, Thi* seminar i* oiQanistd in conjunction with . .

PA Management Consultants ud.

ance

' u tilizing onr
highly specialized, and flodble export finance
services, including expert advice onECGD
procedures and on currency exposure. For '
skiDedsiipportfuMnabankoommittedto
serving the exporter's individual needs, call

Renzo Navon orTeterlNkhblsm
HYPO-BANK London Branch, I, Ange! Court
Loudon EC2R 7HA, U:(0I) 60014.04,

THec 887199.

BttERBSCHEHYPOTHBtEM-lMlWECHSGLrBMat

MsasamMFt

Modem Banking in thejbustllqjiul Tra dition.

BOND DRAWINGS

PUT A
INTO YOUR NEXT
INCENTIVE SCHEME

Better incentive schemes’ mean better profits.

If you want a better incentive scheme that is cost effective,
contact Rewards Plus, a division of Empire Stores. We make full
use of the parent company’s £150 million a year buying muscle
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For more details contact: Rewards Plus, 21 Canteiupe Road, East
Grinstead, West Sussex RH19 3EB or telephone (0342) 25220.

REWARDS PLUS

BUILDING SOCIETY
RATES

Every Saturday the Financial limes publishes a
table giving details of Bonding Sodefy Bata on
offer to the public.

For further advertising details please ring:
. 01-248 8000 , Erin. 3606

AUSTRIAN ELECTRICITY •

U.S*$1 5,000,000 6%% Guaranteed Bonds 1986

S. G. WARBURG & CO. LTD., announce that the redemption instalment of U.S.$90D,000
due 1st July, 1 982 has been met by purchases in the market to tha nominal value of U.S&299.000
and by a drawing of Bonds to the nominal value of U.5.5601.00&

The distinctive numbers of the Bonds, drawn iu the presence' of a Notary Public; are as
follows:— - -

1 to 10 13715 13718to 13722 13727 13728

13745TO 13749 13767X0 13783 13787 to 13797 13811 to 13814

13826 13S27 -13920 13930 to 13941 73958 to 13965

13978 to 13980 -13985 - 14003 to 14068 14319X0 14376

14386 14388 14390 to 14448 14461 to 14462 '14551 to 14560

44560 to 14568 .14571 to 14574 14675 14577 14582 to 14600

14651 to 14703 14705XO 14711 14714 to 14718 14722 To 14730

14735 14751 to 14775 14781 to 14784 14786 -to 14788

147B3to14796 .14799X0 14392 14001 to 14905 14907 14908

14910XO14928 14930XO14941 14944X0 14964 14966t0 14969

14972X0 14974 14981 14982 14984 14985 14990 to 14997

15000

On 1st July, 1 982 there will become due and payable upon each Bond drawn for redemption,
the principal amount thereof together with accrued Interest to said date at the office of:—

S. G. WARBURG & CO. LTD.,

30, Gresham Street, London, EC2P 2EB.,

or one of the other paying agents named on the Bonds.

interest will caasa to accrue on the Bonds called far redemption on and after 1st July, 1982
and Bonds so presented for payment must have attached all coupons maturing after that date.

U.S.$3,6 00,000 nominal amount of Bonds will remai^ outstanding after Ist-Jufy, 1982.

The following Bonds drawn for redemption have not as yet been presented for payment:—

Due 1st July, 1978
7706 8097 8098

Due 1st July, 1980
.702 to 70S

2103

2317 2318

Dm 1st July, 1981
2130 to 2149.
2)415 2500

2227 WM
2503 to 2506

30, Gresham Street, London, EC2P 2EB.

3rd June, 1982

FINANCIAL TIMES

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PERSONAL

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plete. Tower flats to rent.- onfornlthMl.
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cations welcome. Rtnfl 01-628 4372 or
01-508 8110.

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COMPANY NOTICES

EVERARD5 BREWERY^ LIMITED

GIVEN thu. In
ment or Hie half-
30tlt June 1982.

NOTICE IS HEREB1 _
preparation tor the payme

Warty dividend on the Jl_.

Hie, t ransfer books of the 5“i Cumulative
Preference tha its of the above named
company will be closed on lath Juno
1 902*

By Order of the Board
P. I_ W1LFORD
Secretary

LEGAL NOTICES

THE COMPANIES ACTS 1948 TO 1978
MODERN LIGHTING PRODUCTS UMTTB

NOTICE IS HEREBY GIVEN, purauant
to asexfon 283 of the CompBniea Act
1948. that a Meeting or tha Creditors
of tha above-named Company Mill bo
hold at 1 Ward m bn Place. Carter Lana.
London EC4V SAJ on Wednesday, the
16th day of June 1982, at 12 noon,
lor the purposes mentioned in sections
294 and 295 of the said Act.

Dated this 28th day ol May 1982.

By Ortiar of we Board,

J- D, FREDENHAM.

Director.

PUBLIC NOTICES

ST- HELEN’S BOROUGH COUNCIL.
,„*■!* Juwed 1st June 1982 £1.75m a
12 43-64ths“i due 31st August 198Z
Applications Si 0.5m. Total outstandlni
£6. 25 m.

SOLIHULL METROPOLITAN BOROUGH
CS.Om Bills due on 1st September 1982.
were offered on 2nd June 1982. and were
allocated at a rate ol 12 43-64ths%.
Applications totalled £25 m. The total of
BAla outsnndlna is £3-0m.

ART GALLERIES

AGNEW GALLERY, 43. Old Bond SL. W1

B 32- B176 -. MASTER PAINTINGS. 147C
1320. Also late Turner Wattecalotm
Until 30 July. MoiL-Fri. 9.30-5 JC
Thurs. until 7,

BROWSE A DARBY. 19. Carle St. W1.

OI-BSf ,7984. CHRISTOPHER STEIN.
New FajnMnRa.

MWENT GARDEN GALLERY. 20. Russet I
St. WC2. 01 -835 1139. A Selection of
Decorative and Inberestinfl Early British
Watercolours and Draw hi 38. Until June
l£l2J0^ W-4X0. Th"*. 7. Sate.

COLNACMI. 14. OM Bond St. W1. 01-491
1 ®S? CENTURY FRENCH DRAW-
INGS, until nth June. Moa^Frt. 10-6.
Sat 10-11.

DAVID MESSUM IN WINDSOR. 12.
Thames SL. Windsor. Berts. 075X5
691X5. Recent Landscape* by Menryn
Goode. May zatfi-June Sth. 10.00-5.30.

WHITECHAPEL ART GALLERY, El. S77
0107. tube Aldrete E. To 20 June
JA nn IS KOU NELLIS Sun-Frl. 11-&50
d. Set Free,

IgnjIE GALLERY. 30. Bruton St. Wl.
01-493 1572/3- AN EXHIBITION OP
IMPORTANT XIX & XX CENTURY
WORKS OF ART. Mon^FrL 10-5. SAB.

RICHARD GREEN GALLERY. 4. N
Bond St. Wl. 01-499 54 B7. EXHII
TION OF FRENCH PAINTINGS. Da
10-6. Sats. 10-12.30.

CRANE KALHAN GALLERY, 178 Bromp-

01-SB4 7566. Works by:
NICHOLSON SUTHERLAND. LOWRY,
SPEAR. PIPER, N ITCH E NS. COLQUHAN.
PASMORE, etc- Daily -10-6. Sats. 10-4.

CRANE GALLERY, 171a (1st Floor).
Slpane St. SW1. 01-235 7464. Three
minutes front Harrods. Perhaps the most
unosual and beautiful gallery m London,
any Engllrti and American Paintings.
Fumrture. Quilts, etc. Folk Art (not
Foirey Art) In America Is the most
sought after area of the Art world. QaUy
lO-o, Sats. 10-4.

CLUBS

THE GASLIGHT OP ST JAMES’S. London’*

most exciting businessman's night dub.

No membership needed. 2 bars, doxefa of
dancMbte companions. Intriguing Cabaret
Acta. Happy how 8-9 pm. if required,
superb three-eourw dinner, only £.9.75.

plus service and tat Entrance fee £5.75

f£5 refunded to diners ordering tarfopa

9 pm). .Open Mon.-Frl. a om-2 am. Sat.

S nm-z am. 4. Ouko of York Street. WT.

Tel; 01-439 7242.

EVE has outlived tim others bouuse of a

policy of Wr play and value far money.

Supper from 10-5.30 am. EX sco and too

musicians, 'glamorous hostesses, ext I tiny

floorshows. Iflfl, Regent 5t. 01-734 0557.

HANOVARIAN NIGHTCLUB and Re%. 9.
Hanover Street- Wl. Where todays busi-
nessman an enloy an exciting and relax-
ing evening. Charming and discreet danc-
ing partners available nightly 9 nm -1 am.
Recommended to ring far res. on 0I-40B
0269.

the luxury of walnut

AND THE SENSATION

■ . *s ?; - , v- : ' ■ r ‘ :.:V- ••' ' '>>

. ’i: • v . ■ tv

,rW ..^E^iipP

A^-rv:*«r

■v,;' - y--

' V.

v.

\“-7

N V.

?/ / _ m

y

2300 S

■'" sjpea

.-, .. •y-- v

: • ,. ,;y. v . . ... •

"• : ; v .' /T - v . •"

: ... Vr 'V'' ' ' ^

• •■■■ •■’ > •• . ••••’• r*

The Rover name stands for innovative design,
performance, prestige, technological development and
achievement. Qualities that have long made Rover
a very special driving experience.

Never more so than now.

The new Rovers come to you with advances in
styling, in handling, in running economy, in comfort
and in finish. All Rovers are now painted by the
world’s most advanced and proven paint technology.

The sleek aerodynamics of the Rover body
have been further advanced with flush-fitting
restyled headlights, a new grille, wrap-round bumpers
and a handsome front spoiler j* for improved road-
holding at high speeds.

At the rear of the car we’ve' deepened the tail-
gate window for improved visibility, guaranteed even
in poor weather by a new, programmed rear wash-wipe
system. The re-designed Rover interior provides a
totally new driving environment

The re-styled low-profile instrument binnacle
and centre console combine to give you fingertip
controls and quick-to-read instrumentation. ■

And, as you sit back in supreme comfort, you’ll
appreciate that a traditional Rover luxury - walnut
panelling - has made a welcome return*

You’ll also welcome the fact drat we’ve revised
the rear self-levelling suspension* and upgraded the
braking system to bring you a more positive and

responsive driving experience

Rover’s light alloy 3528cq V8 155 bh.p. engine its
renowned qualities of smoothness and refinement
have reached new peaks.

We’ve also extended service intervals to 12 months
or 12,000 miles (whichever comes first).

We’ve not only developed the cars, we’ve added
to the range with a 104 m.p.h twin carburettor five
speed 2000 model. ’ T-c '

Six new Rovers. From the ultimate luxury ofi
Vanden Has to the sprightly economy of two litres. ;

Ask your dealer for a test drive. Arid enjoy the
advanced driving experience :

CterY • > V; 1

*FJ:

ADVANCING THE DRIVING EXPERIENCE

OFFICIAL D.Q.T. FIGURES. ROVER 2000 MANUAL SIMULATED URBAN CYCLE 23.9 MFG (115 L /100 KM). CONSTANT 56 MPH 42.6 MPG [6£ L 400 KM). CONSTANT 75 WH 32.7 MPG( 8 £Lyi 00 KMlR 0 VER 2 O(X)ALTO^MUATH)URBANCYCLE 247 MPGaiALa 00 KMia)NSTAfrr 56 MPR 36 L 2 Mf^( 7 ^L^ 00 KMlCC)fmNl 75 Mm 27 . 6 ^q 0 ^Lyi 00 KM)j
ROVER 2000 MANUAL £ 7451 . BASED ON MANUFACTURERS RECOMMENDED RETAIL PRICE, INCLUDES SEAT BELTS, CAR TAX AND VAX (NUMBER PLATES, ROAD IAX, DELIVERY. AUTOMATIC TRANSMISSION AND GALLIC RWT EXTRA! FOR FLEET SALES INFORMATION RING 021-779 4484 , tEXCEPT 2000 , 230 a -STANDARD ON 26005 , 3500 SE. VANDEN PLAS 4

I

... ...Jvj^icial Times Thursday June 3 1982

SBC i

6.40-735 am Open University
(Ultra High Frequency only).
liOO pm News After Noon. 130
Chock-a-Bloek. 2.00-2.12 You and
Me, 335 .Regional, News for
England'- (except London). 335
4.40 The Littlest Hobo. 5.05T—
Flay School. 430 Drak Pack.
4.46 The Littlest Hobo. 5.05 John
Craven's Newsround. 5.10 Blue
Teeter. -

. 5.40 News.

630 Regional News Magazines.
635 Nationwide.'

- 630 Tomorrow’s World.

. ..7! 15 . Top of .the Pops. .

7.45 It Ain’t Half Hot Mum
starring Windsor . Davies
and Mel vyn -Hayes.

_8.15 Mastermind International
■'■■■ ■■■ '.from New Zealand.

930 News.

935 Oppenhehner . starring
, Sam Waterston: Oppen-
heimer Is engaged in the
race against Germany to
produce an atomic bomb.

1635 Question Time with
Ludovic Kennedy.

ii28 News Headlines.

1130 Fame: . The last of four
programmes with John
Pitman.

TELEVISION

Chris Dunkley: Tonight’s Choice

When the recent Beaconsfield by-election result was finally
announced in the early hours of the morning and it promptly
became dear that the Labour candidate had not only trailed in
third, behind the Alliance, but had. even lost his deposit, 1 Peter
Shore in the Newsnight studio made no bones about it. * 4 It isn't
good enough." he said. The only times when politicians on
television are as honest as that about the performance about
their own parties is on by-election programmes which run late,
exhausting everything else to be said. ‘ This makes them far
more interesting than the result alone ever could, and it is why
1 shall he watching Newsnight on BBC-2 again tonight when
David Dimbleby presents the programme on the Mitcham and
Morden by-election.

Earlier 'Zravellers In Time (also BBC-2) shows a 1922 film
shot by three Americans, the first foreigners ever to make the
trek to the summer pastures with the Bakhtiari tribesmen of
Persia. In Mastermind International on BBC-1, coming from
New Zealand, the XJK is represented by Leslie Grant, presumably
because he won this year’s home contest. But since he then lost
to Sir David Hunt in the champion-of-chnmpions anniversary
programme his presence seems a little odd.

BBC

6.40-735 am Open University.
11.00-1L25 Play School.

5JL0 pm Adolf Loos.
i-5.35 Charlie Chaplin in
“ Shanghaied."

6.05 The Great Egg Race.

6.35 The Oystermen of the Fal.

7.05 Wildlife Talkabout. ;

, 735 News Summary.

7.40 Travellers in T-ime.

SJ0 Human Brain.

9.00 Call My Bluff.

930 Brass Tacks Reports.

10JL0 The Old Grey Whistle
Test.

10.45-1.00 am Newsnight includ-
ing By-Eleclion Special.

LONDON

9.30 am World Famous Fairy
Tales. 945 The World Wc Live
In. 10.10 It’s a Brand New World.
LLOO The Master Builders. 1135
Paint Along With Nancy. 1135
The Bubblies. 13-00 Gammon and
Spinach. 12-10 pm Get Up and
Go! 12.30 The Sullivans. 1.00
News with Peter Sissons, plus
FT Index. 130 Thames News
with Robin Houston. 130 Crown
Court. 2.00 After Noon Plus
introduced by Judith Chalmers.
235 Racing from Epsom— the
2.35, 3.10 and '3-40. 3.50 Survival.
430 Cartoon Time. 4.45 Inter-
national Football Special:
England y Finland at Helsinki.

6.50 News.

735 Thames News.

7.30 Never the Twain starring
Donald Sinden and
Windsor Davies.

8.00 Falcon Crest starring Jane
Wyman.

9.00 Shelley

9.30 TV Eye.

10.00 News.

10.45 Hill Street Blues.

11.45 Ladies’ Man.

12.15 am What the Papers Say.

12.30 Close: Sit Up and Listen
with Robin Knox-Johnston.
f Indicates programme in
black and white

i

i

l

AH TBA Regions as London
except at the following times; —

ANGLIA,

9.30 om .SB&aiflB Street. 1030 Screed
Tour Wings. 70.55 Stingray. 1135
The Flying Kiwi. 1130 Wattoo. Wettoo.

1.20 pm Anglia News. 2.00 Not For
Women Only. 330 Never the Twain.

4.20 Fanglece. 7.05. About Anglie. 730

Survival. 10.45 Snooker "82- 1135

Lou Grant. 1230- atn The Nuclear
Challenge.

CENTRAL

9.30 am~ Somewhere in Hackney. 10.20
Patterns. 10.45 The Making of e Crew.

11.15 Jsmoe G&iwey. 1135 Fengtece.
1230 pm The - Young Doctors. 120
Central Nows. 3.60 Never the Twain.
420 Sport BIHy. 7.05 Central News.

7.30 Emmerdele Farm. 10.46 Venture.

11.15 Central . News. . 1130 Starring

Richard Burton: "Hanrmerstoin Is Out."

GRAMPIAN

9.40 am First Thing. 9.45 Target die
Impossible. 10.10 Gift of Earth— Fiji.
10.36 Poetry of Landscape. 1030 It's
a Musical World. 11.35 Our Ineredibie-
World. 1-20 ‘ pm North News. 3.50
Never the Twain. 4.20 Kum Kum

Cartoon. 4.40 Linie House on the
Prairie. 535 Happy’ Days. 9-00 North
Tonight. 635 Police News. 6.40
C a noon Time. 7.05 Private Benjamin.
735 Survival. 10.45 Cover to Cover.
n.15 Best nt Bliane. -11.45 Seachd
Laithean. 12-15 am North Headlines.

GRANADA

930 am The Lend. 930 Stingray.
10.10 I Am F i|<an. 1035 Bailey’s Bird.
11.00 Sesame Street. 130 pm Granada
Reports. 130 Exchange Flags. 135
Crown Court.’ 3.50 Never the Twain.
430 Spiderman. 7.05 Grenada Reports.
7.30 Emmerdete Farm. 10.45 Vegas
11.45 What the Papers Say. 12-00
Late Night From Two.

HTV

9.40 am Kum Kum. 10.00 Bugs
Bunny. 10.10 Our Incrediblo World.
1035 Stingray. 11.00 Sosa mo Street.
130 pm HTV News. 3.50 Never the
Twain. . 430 Here's Boomer. 7, IS HTV
News. 730 Emmerdalo Farm. 8.00
Falcon Crest. 10.43 HTV Nows. 10.4S
.The Royal Bath and West Special. 11.15
Lou Grant.

HTV Cymru/Wales— As HTV Wost
except: 12.00-12.10 pm Mistar "CJai.
335 Never the Twain. 4.15-4.45
Murphy's Mob. 7.05 Emmerdalo Farm.
735 Y Dydd. 7.45-8.00' Report Wales.

10.4S-11.15 Eisteddfod Genhedlaothof Yr
Urdd Uyn Ac Eifinnydd.

SCOTTISH

9.30 am Arabian Contrasts. 9.45
Lend of Birds. 10.10 Ail tho King’s
Horses. • 1035 Greece— ihn Hidden
Treasures. 11.00 Nova. 11.55 Wattoo,
Wattoo. 1.20 pm Scottish News. 3.50
Naver the Twain. 4.20 Jangles. 4.45
Beyond Wasiwoiid. 5.40 Scotland
Today. 6.10 Acunn Line. 630 Report.
7.05 Sanson. 7 35 Emmerdalo Farm.
1035 Encore. 11.20 Maybe Tomorrow.
11.50 Lata Call. 12.05 am- Seachd
l&ithean.

TSW

930 am Eumpoan Folk Talas 9.45
Bailey's Bud. 10.10 " Kidnapped.”
1135 The Undorsoas Adventures of
Captain Nema. 1237 pm Gus Honey-
bun's Magic Birthdays. 1.20 TSW
Newa Headlines. 330 Nevor the Twain.

4.20 Rockot Robin Hood. 7.05 Today
Soutii-Wcsi. 7 30 Banson. .10.47 TSW
Late Nows. 10.60 Mannix. 11.45 In
Concert. 1.00 am Postscript.

TVS

930 am Eutopcen Folk Tolas. 9.4b
Patterns, 10.10 ’* Kidnapped." starring
Michael Came and Trevor Howard. 1136
The Undersea Adventures of Captain

Nemo. 1.20 pm TVS News. 2.00 Not
For Women Only. 3.50 Never the Twain.

4.20 The Little Brown Burro. 7.05 Coast
to Coast. 730 Emmordale Form. 10.45
Canterbury and Beyond: The Archbishop
ol Canterbury talks about hie leelings
following the Papa’s visit to Canter-
bury. 11. IS Quincy. 12.15 am Company.

TYNE TEES

9.20 am The Good Word. 9.25 North-
East News. 9.30 The Ballad of the
Irish Horso. 10.15 Morning Movie:
" Flight To . Holocaust." 11.50 Larry
the Lamb. 130 pm North-Easi News
and Look around. 3.50 Never the Twain.

4.20 Tho Lono Ranger. 7.05 Norihem
Lite. 7.30 Emmerdale Farm. 10.45
North-East News. 10.47 Job Slot Extra.
10.52 8ost of Throe. 1130 Check It
Out. 11.50 Bizarre. 1230 am Your
Obedient Servant. . - . Pope John Paul.

YORKSHIRE

9.30 am Larry the Lamb. 9.40 Boyond
Wostworld. 10.40 " Laxdala Hall."

starring Ronald Squire and Kathleen
Ryan. 1135 Tho Undersea Adventures
ol Captain Nemo. 1-20 pm Calendar
News. 3.50 Never the Twain. 4.20
Sport Billy. 7.05 Calendar (Emley Moor
and Belmont editions). 7.30 Emmerdale
Farm. 11.46 Crown Groan Bowling.

(S) Stereo broadcast (when
broadcast on VHF)

RADIO t ’ - , RADIO

5.00 am As Radio 2. 7.00 Mike Read.

9.00 Simon Bates. 1130 Dave. Lea
Travis. 2.00 pm Paul Burnett. 430
Pc tor Powell. 7.00 Walters' Weekly.

8.00 David Jensen. 10.00-12.00 John
Peel (S).

VHF Radios 1 and 2—5.00 am With
Radio 2. 5:00 pm David Hamilton -(SJ.
6.45 News, sport. 6.00 John Dunn (5).

7.00 With Radio 2. 10.00 With Radio 1.
12.00-5.00 am With Radio 2.

RADIO 2

6.00 am Steve Jones (S). 730 Tony
Wogan (S). 10.00 Jimmy Young (5).

12.00 dona Humvtord (S). 2.00 Ed
Stewart (S) including Racing from
Epsom. 4.00 David Hamilton (S). 6.00
International Soccer Special: Finland v
England. 7.00 John Dunn (S). 8.00
Country Club with Wally Whyton (Sj.

930 Alan Dell with B>g Band Sound
(S). 9.55' Sports Desk. 10.00 The

Impressionists. 1030 Star Sound
Extra with Nick Jackson. 11.00 Brian
Matthew with Round Midnight (stereo
from midnight). 2.00-5.00 am You and
the Night and the Music (S).

RADIO 3

6.55 am Weather. 7-00 News. 7.G5
Morning Concert (S). 330 News. 8.06
Morning Concert (S). 9.00 News. 9.05
This Week’s Composer: Tchaikovsky
(S). 10.00 Violin end Piano recital (S).
1035 English Songs (S). 11.10 Royal
- Liverpool Philharmonic Orchastra (S).
1.00 pm News. 1.06 The Manchester
Summer Recital (S). 2.00 SchubBrt

piano recital (S). 2.40 " Athalaia."

oratorio in thrBO nets by Hands/ (S).
4.56 News. 5.00 Mainly For Pleasure
(S). 630 Bandstand (S). 7.00 Some
Versions of the Pastoral. 730 Elgar (S).

8.00 " Gulliver's Travels." by Jonathan
Swill (S). 935 Music in Our Time (S).
10.25’ Words 10.30 Allred Brandol
plays Beethoven (S). 11.15-11.16 News.

RADIO 4

6.00 am Nows Briefing. 6.10 Farming
Today. 6.25 Shipping Forecast. 6.30
Today.. 833 Reading. 8.57 Weather,
Travel ' 9.00 News 9.05 Checkpoint.

9.30 Tho Livinq World. 10.00 News.
10.02 As It Happens. 1030 paljp
Service. 10.45 Mo'mng Story. 11.00
News. 11.03 The Fibre Story. 11.48
Enquire Within. 12.00 News. 12.02 pm

You and Yours. 12.27 Brain of Britain
1982 (S). 1235 Weather, tmvel.

programme nows. 1.00 The World at
One.. 1.40 The Archers. 1.55 Shipping
Forecast. ZOO News. 2.02 Woman's
Hour. 3.00 News. 3.02 Afternoon
Theatre (S). 4.00 News. 4.02 Speak
Oulf 4.10 Bookshelf. 4,40 Story Time

5.00 PM: News magazine. 5.50 Shipping
Forecast. 5.55 Weather, programme
news. 6.00 News, including Financial
Report. 6.30 Any Answers? 634 It's
a Bargain. 7.00 Nows. 7.05 Tho Archers.

7.20 Conceit Prelude (S). 7.30 Northern
Sinlo.ua of England concert, part 1 (S)
8.25 Kaleidoscope. 835 Concert, pert 2
(S) . 930 Kaleidoscope. 30.00 The

World Tonight. 11.00 A Book at Bed-
time. 11.15 The Financial World
Tomqhi. 1130 By-election Special: The
Mitcham end Morton by-election. 12.15
am Shipping Forecast 1233-130
By-election Special (continued).

15

BUSINESS LAW

Privilege for EEC lawyers

BY A. H. HERMANN, Legal Correspondent

MAY 18 deserves to be jnarked
with red loners in the diaries
of EEC competition lawyers in
private practice. A judgment.*
handed down by the European
Court on that day, will go a
long way to create for. them a
useful monopoly and to elimi-
nate the ‘ competition of in-
house lawyers and of American
and any other non-EEC lawyers
active in this lucrative branch
of law.

The unexpected bonanza
came in the form of a restric-
tive pronouncement by the
court on what is referred to as
“legal privilege,” namely the
confidential status accorded in
most countries to communica-
tions between a lawyer and his
client.

The judgment substantially
allowed an appeal brought by
Australian Mining & Smelting
(Europe) (AM & S), a sub-
sidiary of tbe Rio-Tinto Zinc
Corporation, against the Com-
mission's decision No. 79/760/
EEC of July 6. 1979. Tbe Com-
mission’s inspectors visited the
offices of AM & S with an
authorisation to investigate an
alleged price aud market-
sharing cartel between a num-
ber of zinc-producing and
trading companies. The inspec-
tors took away some 35 docu-
ments. but were refused others,
for which legal privilege was
claimed. AM & S suggested that
the Commission should get in
touch with the company's soli-
citors should it need further
confirmation that the documents
were privileged.

The Commission did not
accept the invitation. Instead,
it made a formal decision under
Article 14/3 of Regulation 17/62
requiring AM & S to submit
to a fresh investigation at its
premises at Bristol and Avon-
moulh, and to produce certain

business reports, including all
the documents for which the
company claimed legal privilege.
When that took place, tbe
inspectors were invited to look
at parts of the documents to
satisfy themselves that these
were indeed privileged.
Solicitors for AM & S went
to Brussels, but tbe Commis-
sion’s officials refused any com-
promise. They insisted that
their inspectors must have the
right to read the whole of the
documents. AM & S was left
with no other possibility but to
appeal to the European Court.

All law is of interest to
lawyers,, but none quite so
much as That which affects tbe
performance of .their profession.

The AM & S case became a
cause cclebre even before it
had properly begun. The Con-
sultative Committee of the Bars
and Law Societies of The Euro-
pean Community (CCBLS). the
UK and France, asked to be
allowed to intervene in the pro-
ceedings. and their applications
were granted. The issues at
stake were not world-sha tiering,
but could well put many a
lawyer out of"’ business: who
would want to consult a com-
petition lawyer if the questions
asked and answers given could
be used by the enforcement
authorities as evidence that he
was up to something which
might infringe competition
rules?

The European Court was
asked two questions: the first
concerned substantive law —
was “ legal privilege ” a part of

Community law because il was,
in one form or another, respec-
ted in all member stales ? The
second .concerned procedure —
who should determine whether
a particular document falls
under this privilege ?

AM & S. the UK and
CCBLS argued that legal privi-
lege was part of Community
Jaw because it was practised in
member states and because it
was essential for safeguarding
the rights of defence. It was
also part of human rights
which the Community must
respeef. On a more utilitarian
level, it was argued that it was
in the interests of the Com-
munity that companies should
receive guidance' from their

lawyers, enabling them to keep
within its rules and regulations,
and that the resulting advantage
to Community law far out-
weighed any disadvantage
which any individual investiga-
tions might suffer.

France vigorously opposed
such ideas. Legal privilege was
not a principle common to all
laws of the member states. The
Commission was authorised by
Article 14 of Regulation 17/62
to “ examine tbe books and
other business records.” Docu-
ments written for the purpose
of obtaining or giving legal
advice were well within this
category.

Tbe European Court held that
the rules requiring and em-
powering the Commission to
demand documents “ necessary "
did not exclude the possibility

of recognising that certain busi- ;
ness records were of a confi-
dential nature. All member ’
slates protected the confiden-
tial! ly of written communica-
tions between a lawyer and his
client made for the purpose of
the clients' defence, provided
that the lawyers were not bound
to the client by a relationship
of employment, and that they
were entitled to practise their
profession in one of the mem-
ber states, regardless of the
member stale in which the
client lived.

Dealing with the procedural
issue, the court rejected pro-
posals that disputes between the
Commission and the parties as
to whether a document enjoyed
legal privilege should be de-
cided by arbitrators, indepen-
dent persons, or national courts.

It was up to the Commission to
decide whether it required a
certain document. The dissatis-
fied party could appeal tn ihe
European Court and ask for a
temporary suspension of the
Commission's decision. The
court would decide whether this
decision was valid or not. after
inspecting the documents.

ir did so in the present case
and found that a part of the
documenls deserved to be privi-
leged. It voided to that extent
the decision. As a parr of the
documents was not so absolved.
AM & S and the interveners
would have to pay their
costs. This does not seem right
as the dispute was really about
the principle and whether the
Commission's inspectors must
have ihe last word. The Com-
mission lost on both those
counts and should have been
made to pay the costs.

* Cfise 155/79. A. Iff. & S. Europe
r. EEC Commission Mat/ IS 1982,
unreported.

A judgment which might well reduce the
employment of in-house and non-EEC
lawyers in competition matters

RACING

BY DOMINIC WIGAN

GOLDEN FLEECE retained his
unbeaten record in yesterday's
203rd running of the Derby. He
won in the style of a champion
and a colt who is likely to wind
up in Kentucky with a £20m
valuation on his head.

An ultra confident Pat
Eddery, who rode Grundy to
success a few years ago. took
Golden Fleece into a challeng-
ing position some two-and-a-haif
furlongs from home after being

near the back of the field early
on. However, from that point,
the outcome was never in doubt
as the Cashel colt swallowed up
Norwick, Touching Wood and
Peacetime in a matter of strides.

Golden Fleece, sent clear with
minimum fuss, would have won
by a far greater distance than
the three lengths with which he
was credited, had Eddery not
eased him considerably. He also
lost distance by hanging towards
the rails.

. The result will have pleased
most people in thoroughbred
racing and breeding circles,
after all the trials and tribula-
tions which the Robert Sangster-
Vincent O'Brien camp have had
with Golden Fleece.

The Sangster breeding com-
bine had not been responsible
for a Derby winner since the
Minstrel got home.

Golden Fleece passed the post
in a near record time of just
over two minutes 34 seconds.
There is no doubt he would
have entered the record books
if his rider had asked him to go
all out to the line.

Touching Wood was Golden
Fleece's closest pursuer at the
line. He was chased home hy
Silver Hawk and Persepolis
who were separated only by
pbolo.

This afternoon it is the turn
of the older horses with the
Coronation Cup which two nr
three years ago went to the dis-

appointing Peacetime's hrnther.
Quiet Fling. On this occasion.
Jeremy Tree, the trainer of
those colts, is without a runner.
However, Southern Stables are
strongly represented through
such high class performers as
tiie Ian Balding trained Glint of
Gold and Arundel’s Castle Keep.
Castle Keep needed only to be
pushed out to beat Aperativo by
two lengths at Goodwood, hut I
douht if he is quite good enough
to account of Shergar's closest
pursue! on level terms.

EPSOM
2.00 — Topori
2.35 — Fairy Tern 4 ”*

3.10— Glint of Gold**

3.40— Command Respect*
4.15— Warri

Accountancy Appointments

ACCOUNTANCY APPOINTMENTS
ARE CONTINUED ON FOLLOWING
PAGE

Accountant

to join one of the world's
most outstanding & prestigious
research centres

c. £10,000 p.a. Northamptonshire

Piessey Research (Caswell) Limited Is an autonomous
Company within the Piessey organisation and fulfills the
key role as the Group’s Corporate research facility. Our
R & D covers multiple aspects of microelectronics tor which
we have ear ned a good reputation 1 nternatiohally.

We wish to appoint a qualified Accountant (ACA,
ACMA, ACCA) whose prime responsibility will be to control
the reporting of the trading function of the business. This
wili involve working closely with Technical Managers to
maximise the benefits of accounting procedures.

Ideally applicants will be within the age range 24-30
years-and have had some experience of government
accounting procedures.

In addition to salary we.offer an attractive range of
benefits including BUPA, pension and generous assistance
with relocation costs.

For an informal discussion please telephone
Bob Ashford, Resourcing Manager on (0327) 50581 ext 489
or to apply write with c.v. to him at:- Piessey Research
(Caswell) Limited, Allen Clark Research Centre, Caswell,
Towcester, Northamptonshire, NN128EQ. Please quote
reference FT/P/302.

OPLESS EY

FINANCIAL ACCOUNTANT

A major London based UK

Group of companies (current _
annual turnover In excess of £35
million) with interests in the
leisure and entertainment
industries wishes to appoints
qualified chartered or certified
accourrtantwjthagood
Knowledge of Internal controls*
and with commercial experience
— preferably in the travel and
retail trades. ^ .

Thesuccessful candidatewill

fain a small, dynamic team and
will personally contributeto the
production of financial reports
for the Group. Aspecific interest

In financial accounting is
obviously nec e s sa ry, but the
qualities of dear thinta'ngand

a tte n ti onto detail are equally
essential; ‘

Salary is negotiable, dependent
upon experience.

Usual company benefrisane
offered! commensurate with a
seniormanageriai post witha ' .
successful organisation,
in thefirst Instance, please
contact:

Theresa Rafle* Personnel Manage;
Exp-frtel Group Ltd, Banda Howe,
Cambridge Grove, Ha n i nwnmi t fa Wfc
or telephone 01741 4349

FINANCIAL

CONTROLLER

Central London base

c. £14,000

This position combines the financial controllership of an expanding UK
manufacturing and service company with an overseas group coor-
dinating role and the opportunity to become involved with the chair-
man in new venture and other investigations. Some travel in Europe
and the USA will be necessary.

Preferred applicants will be graduate chartered accountants aged
under 33 with international firm experience followed by two or more
years line accounting responsibility. Familiarity with exchange, taxa-
tion and statutory implications of overseas operations and ownership
is essential as is the initiative and commitment to contribute to the
success of a growing organisation.

Please address brief personal and career details to Douglas G Mizon
(Ref FT/232/M).

I&

Ernst & Whinney Management Consultants
57 Chfcnvcll Street, London EC1Y 4SY.

MANCHESTER

INTERNATIONAL

AIRPORT

DIRECTOR OF FINANCE
AND ADMINISTRATION

Salary — £20,250 to £21,402 per annum

Manchester International Airport is the largest municipally-owned airport
in the U.K. expecting to handle 5ra passengers in 1982, with a total income
in excess of £39m in the financial year 19S1-S2. t

The Director of Finance and Administration is responsible for all financial
and administrative matters including advising on the determination of and
the implementation and monitoring of financial . policies and exercising
overall control over the Finance and Administration Divisions.

Applicants must have proven management ability in the financial field at
a senior level in a large organisation and should possess a degree and/or
an ■ appropriate accountancy qualification (preferably Chartered, I.C.M-A.
or C.I.P.F.A.). Legal and administrative experience would be advantageous.
Application form (returnable by 21st June 1982) and further details
available from the Head of Personnel Services, Manchester International
Airport Authority, Manchester M22 5PA. Tel; 061-489 3714.

MANAGER FINANCIAL ANALYSIS

West London To £17,500 + car

Out client, a subsidiary ofaUS manufacturing and marketinggroup, currently seeksa
progressive accountant (age 29-35) for this important managerial position. This
appointment affords the opportunity to make a significant contribution to company
policy-making and business success; consequently, applicants attributes and
experience should include the following:

Planning/ analysis experience
Ambition and creativity
Major company exposure
Accounting qualification

The ability to effectively communicate with managers of varying disciplines together
with an overall business awareness is essential

Interested applicants should submit full career details quoting ref S31 to Philip
Cartwright A.C.M.A. at 31, Southampton Row, London WC1B 5HY
Telephone 01-405 0442.

Michael Rage Partnership

Recruitment Consultants

London Birmingham Manchester

Adcocfe Simfein

GROUP ACCOUNTANT £11,500-£13,000

West End Publicly-quoted Group

ACA/ACCA (25-32) to join a Group Finance team offering a wealth of expertise in such areas
ds Fund Management, acquisitions, planning and consolidations.

With potential of the candidate being paramount the Group isopen-minded on the extent of

post-qualification experience and is equally keen to entertain applicants direct from a

‘ "idu

Professional office as those with exposure to commercial/industrial accounting.
Responsible to Financial Controller you will interface with Senior Managers at both Group and
local level, thus enjoying an excellent opportunity to become familiar with the financial
policies of a profitable Public Group and the effective interpretation of these policies within
autonomous operating subsidiaries and divisions.

Definite scope for fast career progression in the Group.

In the first instance contact J. R. ADCOCK

__307-308 HIGH HOLBORN, LONDON WC1V7LLTel: 01-405 6855

APPOINTMENTS WANTED

VENEZUELA

British Mechanical Engineer (UK
trained) with extensive experience
in Central and South America offers
immediate services to established or
establishing company in Central
Venezuela (Valencia, Puerto
Cs hello, Mara cat area}. Age 46,
married, no children. resident
status, totally bilingual English/
Spanish, own housing in Valencia,
willing to undergo training.

Please address enquiries to:
Apartado 3006, Valensia. Venezuela
Tel: Venezuela Valencia 219416

AS A PRESENTABLE 34-YEAR-OLD WITH BUSINESS ACUMEN
INVOLVED IN MANAGEMENT SERVICES

with dealings in vehicle fleet operations, building and fire regula-
tions. company moves, financial investigations, securicy, air trans-
port and travel, telecommunications, health and safety, fire pre-
vention. with direct management, liaison and reporting, I have the
ability and resilience to deal with most problems on a permanent
or temporary basis and relieve you of the consequent time and
pressure. Will travel. Location immaterial. Highest reference available.

Please telephone Ken Murray Of 633 3473 or
wiire Boa A 7875, Financial Timas, 10 Cannon Street, London EC -IP J0Y

gf/M

Group

Director

London/hbrthem

HomeCounfies

c-mooo

For a medium sized public company engagedm
the distribution of components to a broad

spectrum of cnstometB, Tho group is foaociaBy

sound with a successful histozy awlohjectives
tnHn rip farther growth through actruisitttgi and .
organic development.

complete responsibility for the financial and
accounting functions, and will be expected to
contribute to the eonroeirial management and
success of the business. »

Candidates most be qualified accountants with
proven success at senior managernentlercl fa a
distribution ormannfacturmg environment

Remuneiation is negotiable with the tettal
freirefite , mrliirirng r elocation exp enses if .
necessary.

22081L, toN. Hals®, 165 QueenVidoriaStred,
JBlackfiiars, London, EC4V3PD .

P

Peat, Marwick, Mitchell & Co.
Executive Selection Division

FINANCIAL ACCOUNTANT

Fisher Conwris Ud la- part of a
non generation of > rruty rate irrational
companies, operating end organised
on a worldwide basis.

To support tha Finance Director m
the progressiva integration of our
existing UK financial structure with
that of the rest of. our European..
Middle East and African base, we
requite an experienced Financial
Accountant who can bring to bear
a crucial range of specialist
abilities.

You wM ' be spearheading the
Introduction of a Kva accounting

facility. IAS/3000. throughout 'the
UK. pan of a financial mt
am bracing our locations in Franca,
Germany. Italy, Spain. Switzerland,
Austria and the Netherlands.

Obviously you must be a fuHy
qualified Financial Accountant, male
or female, with at - least 5 years
industrial experience and an
intimate 'knowledge of U.S. and
EEC - financial reporting require-
ments. fluency in one of Hie
main European Community
languages Is paramount and a
working knowledge of others
desirable.

For further ‘ information write
enclosing ful personal and career
details to:

nay Williams
Personnel Director
RSHSt CONTROLS LTD.
Century Works

Carrington .Road, Lewisham. SE13

We are an expanding consultancy practice
whose clients, both in the ILK. and overseas,
include businesses of all sizes, governments and
other public sector organisations.

"Hie work will include a naly sing clients'
-problems, advising them-on strategic planning
and organisational matters and helping them
to improve their operating, management
information and control systems,
in addition to U;K. work, our consultants have

opportunities to participate in projects overseas,
for which generous supplements are paid.
Applicants should be aged between 28 and 35,
have a degree, anaccountancy qualification or
an MBA and at leastfive yearef business,
experience; - . ■ : —

Please send a comprehensive career resume,
including salary history and daytime telephone |
num ber, quoting ref. 20 5 7, to G-J. Perkins. I

Career development prospects are excellent.

__ . _ _ . . . « . * w n tT. »* — -- --T !l -■ —

Anthony J. Forsyth, B .S c. at our London address, quoting reference number 3675.

410 Strand, London WC2R ONS. Tel: 01-836 9501
26 West Nile Street, Glasgow G1 2PF. Tel: 041-226 3101
3 Coates Rape* Edinburgh EH3 7AA. Tel: 031-225 7744

. Dougte Lkimbias AsKxkjtas LxtmHxJ
Aacounfancy& Management
Ruu uBu

The Country’s most successful Recruitment Service

Financial Controller

TbudieBoss&Ca,Mana^mei^Consubaiits

Hill House,1 Little New Street London EC4A 3TR.Tef: 01-353 8011.

A mam tar of tiw M anegament ConauJtaiiirtaaociafion

A

Yorkshire

£17,000 + profits + car

Ft

L.

is one of the largest ptnilbyprocessorsmttetr.ILTPithananrHialtdniover
■ #in excess of £50m- The Group has achieved significant growth, within thefestfew
^ years and plans for this growth to continue through the'1980is.

Hie Financial Director I Designate! will report to the Chairman and be responsible for all
financial and accounting matters with special emphasis on financial planning, budgetary
control and the development of computerised systems.

Candidates, male or female, should be qualified accountants with a high degree of self
motivation and initiative plus the ability to make a significant contribution towards the
continued success of the G roup. The likely age range is 35 to 45.

A generous remuneration package is negotiable and includes a company can Hm Group
would contribute towards removal expenses. T"S - - -

Please write, in confidence, giving concise career and

personal details and quoting reference MCS/1960 to: -w 'g __T_ ___ _
CLA. Downes, Executive Selection Division, Victoria \/\/ dltl llUUbt
House, 76 Milton Street, Nottingham NG1 3QYL y \ A soriatcs

ACCOUNTANCY

APPOINTMENTS

APPEAR EVERY THURSDAY

The Group has gained an international reputation for quality and innovation In the capital
equipment sector in less than a decade, as its enviable financial performance demonstrates.
Responsible for the Finance function of the U.K. Division, the Controller reports to the Group
Managing Director and must develop the function as continued growth demands. Heading a
small accounts department,duties include the developmentof systems using computerfacilities,
preparation of financial information and liaison with operational management The person
appointed will be ambitious, self motivated, technically soundand demonstrate the commercial
acumen to attain a! Board appointment within a year.

Telephone:. 0532 459181 (24 hour, service) quoting Ref: 3217/ FT. Reed Executive Selection ;
Limited, 24/26 Lands Lane, Leeds LSI 6LB.

The above . vacancy is open Jo both male and female candidates

London • Birmingham • Manchester Leeds

FINANCIAL DIRECTOR

SE England

c- £17,000 + Car

Our diene is a substantial and expanding manufacturing company with a number of
UK locations.

The requirement Is for an exceptionally able and energetic Finance Director aged 30-4S
to take responsibility for all administration, planning, financial provision and control and
systems.

The ideal candidate will currently hold a senior position in a company operating strict
financial controls within a strong manufacturing and marketing environment and will be
commercially aware as well as having good communication and motivation skills^

Please reply in confidence with fuff career details to M ] Hudson;

Hudson Shribman International

College Hill Chambers, 23 College MB, EC4 01-2487851

OF FINANCE

The Port of Paver is one of the most successful parts rn the
United Kingdom, the largest in terms of value of trade, and one
of the- most important in the world tor pas a eager end vehicular
traffic. It is administered by the 1 Dover Harbour Board, a. -Public
Trust, employing nearly 4.000 staff, with an annual operating
revenue expected to exceed £20 million in 1982. Tha Board is
currently undertaking a major programme of capital expenditure.
Applications are invited for the above position, arising from the
resignation of the present Director, I ram graduates (any
discipline) who «re also proiessionaliy qualified accountants.
Candidates, under 50 years of age. must have had previous
experience of financial control within a large and successful
commercial, industrial or public body at or immediately below
board level. Previous port or shipping experience, while useful,
is not- essential.

Reporting directly to tho Board's General Manager and Register,
and his deputy- die Director of Finance is responsible for the
efficlont operation of the following divisions — Accounts.
Budgetary Control. Computer Services and Planning Services.
The dirties will include the operation of affective systems of
control over all the Board's financial affaire, the provision of
management information, the monitoring of budgets end cash-
flow. and the management of the corporate planning and man-
agement services functions.

The salary for the position will be In the range £15,700 to
£18.000 per annum (to be reviewed on 1st July, 1982) with
additional benefits Including company car, non-contributory
pension and Me assurance scheme, sick pay scheme and annuel
bonus.

FurthBr details may tie obtained from The General Manager and
Register, to whom applications (enclosing full curriculum vitae)
should also be addressed in order to arrive by 21 si June. 1982.

U1 1! I! in

FINANCIAL

CONTROLLER

Kent Coast

£15,000 + car

Filling the key role in financial control and in the development
of computerised systems and business procedures, the
Controller will structure, train and manage a division of 30 staff.
Responsible for both financial and management information and
its analysis, he or she will have additional responsibility for
treasury and for certain commercial functions. The Controller will
work closely with the Financial Director on the financial and
commercial aspects of business development including possible
acquisitions in the UK and overseas.^

An export orientated public engineering company with a -
turnover in excess of £20 million, our client is taking advantage
of increasing demand for its products and is poised for major
international expansion. Applicants, aged 28-35, should be
qualified accountants with an industrial background. Experience
in both line management and computer systems is essential.
Please write to David Hogg FCA quoting reference 1/2132
enclosing a career history, including salary progression and a
daytime telephone number.

EMA Management Personnel Ltd.

Holton House, 20/23 Holbom, London EC1N 2JD
Telephone: 01-2427773 124 hour).

GROUP FINANCIAL CONTROLLER

East Midlands

• Our client has diverse interests in a variety of business
and financial investments at home and overseas.
Turnover is approximately C20M and there are over 500
employees. The Board now wishes to appoint a Group
Financial Controller & Company Secretaiy, reporting to
the Chairman, to coordinate the firiancial and accounting
systems and lo advise the Board on financial matters.

• The successful candidate will be an energetic, mature
and forceful chartered accountant with a commercial
background at senior management level, coupled with
exposure to computerised accounting systems. He or she
will be resolute and resilient with excellent analytical and
communication skills. Considerable travel will be
necessary. Age indicator. 35-4 5.

neg from £15,000

• Salary negptiable from E15K.
Other benefits: car, pension
scheme,iife assurance.
Relocation assistance
available.

• IniSaMnletviews will take place
at Windsor and in the Midlands.

• For further details and an
application form please
telephone Linda Shand,
Recruitment Secretary;

on Windsor (07535) 67175
(24 hrs) quoting ref DM/4TL

CONSULTANTS

UMtTED * & P«*ne* tor »ndusJ*V ofc

ASSISTANT

FINANCIAL

ACCOUNTANT

salary c. £10,000 depending upon experience

. We requse a qualified (ICMA/ACCA/ACA) or finaRst with
2-3 years general accounting experience. Ideally aged
22-25, who wishes to actively pursue e career in Accoun-
tancy. The ability to communicate well with people of afl
ages and levels and to obtain information from non-
accounts staff is essential.

You wiB provide regular accounting services such as die
preparation of Annual Company and Group Statutory
Accounts and Board papers, and provide expert advice on
such subjects as cash forecasting and taxation.

Generous benefits indude 5 weeks holiday plus og *
bonus, contributory pension and life assurance *Sr
scheme, canteen facilities and sports and social dub. Ora

Please apply to: ««

Personnel Department.

BRADBURY. WILKINSON AND CO. LTD..

265 Burlington Road, New Malden,

Surrey KT34NH
Tdi 01-847 3271

m

controllers:

g. £15,000

The National v\fater Councfl was established by Ihe Water Arti973as tho
central co-ordinating and policy making body of the Water industry in England -
ana wales. Although the Council’s primary role is non executive*-# provides
certain com mon services for the 10 Welter Authorities.

An experienced, professional Accountant is required to integrate and
devdop a variety of accounting and financial operations at the Couricfffc
established office in Sheffield which is extending its activities.

The responsibilities of this new post will be wide tanging with parficuiar
emphasis on the provision of sound managen^nt accounting and firranciaf
advice sendees tospendmg units; some travel to other offices will be required •

Expenence of managing the introduction of computerised systems in the

financial area is essential,

. offer good condrtions of seryfea in a demanding but cortge niai -

environment; fuH information about the post is available from:

J. CX Richards, JPFA. FPMt,

National Water Council,

St Peter's House, -

Hartshead, Sheffield SI 1EU.

.Tel: 0742 737331 . ..

to whenn written a^ilicaiJqnsshoiKdbe made bythe2lst4imd1982. ." ’

I

Financial Times Thursday June 3 .198S

Srm

ifuiil

J 3

E

m

a

r

W London area, £30,000 neg

For a £150m safes quoted UK group, dhristonaliy organised, with substantia]
overseas interests. A wefl balanced mix off advanced technology products and
services and geographical spread tea provided consistent profits growth over
the past 4 years, 1

Reporting to tfurMD you will direct the group financial function supported by
■ a small HQ staff .You wifi play a major rots fir assisting the Chairman and the
board in developing fang tenri strategies. -

. Substantia] experience in an international industrial group is essential

Resumes including a daytime telephone numberto E J Robins, Executive

Selection Division, Ref. RO£L

Coopers

&Lybrand

associates

Coopers & Lybrand Associates Limited
rraqagernertf considtants

Shelley House Noble Street '

London E&&7DQ

Executive Selection Consultants

BIRMINGHAM, CAPDIPF.GLASGOW, U?Kpff. J pyntW MANCHESTER. NF\Vr.A<iTTJ> W SFTFFFtFLn

Chief Internal Auditor

Papua New Guinea, c£18,000

For a major subsidiary of an Australian multinational group with diversified
. . interests including merchandising and distribution, manufacturing,

automotive, shipping and transpotttotalling several thousand employees. The
Chief Internal Auditor, whose primacy function is the supervision of a n
independent appraisal activity will conduct financial, operational and EDP
reviews throughout the subsidiary’s trading operations as a basis for service to
management by measuring and evaluating the effectiveness of its financial,
managerial and other controls. Qualified accountants, aged 30 - 35, must have
bad several years’ financial, operational and EDP auditing experience at
supervisory or departmental control level in a large industrial organisation or
major professional practice, preferably with international operations.

The above remuneration package consists of a basic salary plus bonus and
benefits include subsidised housing, annual leave fares, educational
allowances etc.

BE. Hoggett, Ref: 10305/FT. Candidates should write or telex FULL career '
details to date to: Minerva House, East Parade, LEEDS, JLSl 5BX . 0532-448661.
Telex: 55293 Chacom G4HB.

/e

s+car

C2 £*.:=!
?s‘rs‘es.
? G r O'jp

acting =

per = on
merc‘2<

TAX PARTNER DESIGNATE
LANCASHIRE

A.CJL30+ NEGOTIABLE c.£18.000

Ourclieni, a •nn«diTTm sized firm of chartered accountants with offices throughout the United
Kingdom, is seeking to recruit a Tax Partner to service the firm's Lancashire practice.
Candidates should be aged from 30, be qualified chartered accounta n ts and have some years'
post- qualified experience at manager level in corporate tax with a good working knowledge
of . personal tax.

Clients range from small family businesses, partnerships through to a number of publicly
quoted groups. Prospects exist tp early salaried partnership and fall equity partnership in the
medium, term.

For mare information please telephone, or write with a c.v. to George Ormrod B.&. (Oxon)
at our London office quoting reference 3671. •

ACCOUNTANCY APPOINTMENTS

RATE £29.00

Per Single Column Centimetre

Financial

Controller

c. £ 16 , 000 + car

. \ Our client is a medium sized engineering
company with a strong marketing influence

-T.7. .r.i.it.i.T.rrii.it.T.iiHn

They wish to appoint a financial con-
troller who must be on effective manager
with the ability to ensure the regular .
production of dependable management
information. Experience of integrated
management information systems in a

manufacturing environment and sound

ments. Up to date exposure to computerised

manufacturing and accounting systems is
important. The present status of the
Company, its markets and likely new ven-
tures should be a stimufantfo the most able
of finance executives. The location is a very
attractive part of Southern England. Appli-
cants should hold a recognised accounting
qualification and preferably be aged 30-35.

Please apply (men and women), jn
confidence quoting reference 6090 to

MasOTSJVurse Associates IVfr^OH

Ncxlhvv^st House IV UjUJVyl 1

SndOTN^/f^ij eROad &Nuise

Offices in London & Birmingham _ . ,

Selection & Search

410 Strand, London WG2R ONS. Tel: 0T-S36 9501
26 West Nile Street, Glasgow G1 2PF. TeL' 04T-226 3101
S.Gqms THace^tdmbuiBh EH3 7AA. let <331-225 7744

LLAfIBIAS

DoogksUainiias AaodotasLmflad
Agp uo twxy&Mon Mywu i iflit •
Kecru/liJieftfCbffidtanfs

FINANCE CONTROLLER -
MANUFACTURING

c £16,000 + bonus + car

Ourcfienris a U.K. subsidiary (X^O £50m) of a major U.S. group. Engaged in
themanufecture and distribution. of feat moving consumer product^ it is a
brand kadqr in its field.' . -

The company is moving info a period of exciting change and seeks a top flight
A.CLMA. (age 25-34) to play a key role at its major location. The successful
candidate will dearly demonstrate ability and achievement in the following:- -
• Maiiufectum^costaccomtm

!?n

m m ‘L % t t

3W»< - -*

3

nfJQS

;ior

2

ricr:e

• Motivation and leadership

# Financial analysis and reporting

Relocation assistance will be given to an attractive location on the Hampshire coast
Interested applicants should submit full career details quoting re£ 830 to
"liilfo Cartwright A.CMA, at 31 Southampton Row, London WCLB 5HY.
dephone Kt4030442,

SENIOR ADMINISTRATION ASSISTANT /
ASSISTANT COMPANY SECRETARY DESIGNATE

Bankers Trust International limited, the UK wholly owned subsidiary of Bankers Trust
Company, New York, is searching for a self-motivated person who will become a member
of a team engaged principally in financial control and reporting, computerisation and
secretarial duties. The duties of the successful candidate, who will report initially to the
Company Secretary and the Controller, will be within the financial and sp/vrA tarial areas.
Salary is negotiable circa £12,000 and a fringe benefit package appropriate to a major
financial institution is also offered-

Candidates probably aged between 28 and 33 will:

# be in the final stage for the completion of the examinations of one of the major
accounting qualifications or be newly qualified;

• have work experience gained in a professional practice and/or a banking

environment _ •

Encouragement will be given for the completion of examinations where appropriate.

In the first instance please write giving reasons why you may be suitable for tie position
offered.

Communications should be addressed to the Company Secretary, Bankers Trust Inter- ‘
national Limited, Dashwood House, 69 Old Broad Street, London EC2P 2EE.

i si FTTm ft

■B

Vy rJ:

Michael Rage Partnership

Recruitment G

London Birmingham Manchester

Financial controller

i

North West, £12,000 -£15,000 + car

For a newly formod finance house wifft a largely captive market and part of
a major US group.

Reporting to the Managing Director you will be responsible for the entire
financial function and will also act as Company Secretary. Your immediate
task will be to assist the Managing Director, DP Manager and other key
executives in getting the company operational- as quickly as possible and in
establishing all necessary financial controls and reporting procedures. ■

You must be an adaptable qualified accountant with at least 3 years’ post*
qualifying experience in commerce or the financial sector in a company
making extensive use of DP facilities.

This is an excellent opportunity to get in chi the ground floor in a company
with ambitious plans and strong financial backing.

Resumes, which win be acknowledged and forwarded to our client unless
a covering letter gives contrary instructions, to E J Robins, Executive
Selection Division, Ref. R087.

I -Vt

Coopers

&Lybrand

associates

Coopers & Lybrand Associates Limited
management consultants

St James's House Charlotte Street
Manchester MT 4DZ

U.S. Accounting-

C. London c. £11,500

The Headquarters of a world-wide high technology group, our client now
seeks a further qualified accountant for the corporate accounting area.
.Yon will form part of a team responsible for the control and analysis of.
operating company results; you will also be particularly involved in legal
consolidations and currency reporting to the American parent company.
~The company utilises sophisticatedeomputeriscd systems and mimy micro-
computers far processingand analytical purposes.

exposure tocoiporateaccqunting orUS statutory reportmgrequjrements.
Ambition and management potential will be well rewarded in this
progressive group where promotion prospects are excellent,
pi telephone or writeto Rebecca Goddard qiiotmgrefc RG6091.

.v

~ —

- . IfopdChapman
Associates

12£NewBondStree£^ QHR (B-499fA>i

FINANCIAL CONTROLLER

We are. a small dynamic and expanding pic with
financial and industrial interests who seek a quali-
fied person keen to make a positive contribution
within a slim dedicated HQ team.

Responsible to the Chairman and Chief Executive,
the position calls for strong emphasis on finance/
management accounting, cash flow and controls,
and will include secretarial matters. Business
experience is essential

Applicants", ideally in their 30s,. should be within
f hour travel of West End. Remuneration
negotiable.

Apply with full details , in confidence , to

Box A.7873, Financial Times
10 Cannon Street, London EC4P 4BY

AMSTERDAM LOON

mg. c.£13000— £15000

TWO young ACA/CA's or equivalent, age c 23-30 are required by major U.S. multi-
national for positions based in both Amsterdam and London involving in excess of
. 50% European travel. i. . ■

. Those recruited will have good professional backgrounds and possess the drive, ambition
and personality wbidi equates with success.

'A' good to fluent second European language, preferably French or German, is ‘desirable
and career prospects are excellent,.

In the. first instance please telephone the Atompany's adviser (and send your CV to);—

GEORGE D. MAXWELL
•5, CHaribqrt Court,

London NWS 7DA.

Telephone! 01-722 8093 (24 hours)

18

JOBS COLUMN

Confessions of candidates from the campus

BY MICHAEL DIXON

Financial Times Thursday ‘ June . 3 1982

£ 20 -£ 25 ,€ 00 +car+lH>nns

EMPLOYERS who advertise
not for real people, but for
bundles of abstractions sum as
“imaginative profit-oriented
approach with intelligence sa£
drive,” seem finally to have met
their match.

Here is a self-description
■written on a Job-application
form by one of this year’s im-
pending university-leavers.

“I am particularly good at
organising, possess a dynamic,
but practical and conscientious
approach to life and work and
always strive for perfection. As
a result of higher education I
have gained an intellectual and
social maturity, a trained and
disciplined mind and learned
to applv my knowledge and
ability to their best advantage.
Living with fellow graduates
has helped roe better under-
stand the individualism of
people, endowed me with
patience and diplomacy and the
ability to quickly assess
people's needs and wishes.”

On balance, 1 feel, any human
recruiter would be less likely
. to offer that candidate a job if
toe claim turned out to be true
than if it were merely a delu-
sion or — as I hope is the case —
satirical.

But Martin Highara of Rown-
tree, who cites the student’s
reply in the latest newsletter of
the Standing Conference of
Employers of Graduates, also
supplies three quotations from
job-applicants who strayed too
far in the opposite direction.

They range from the priggish:

u r prefer to keep my interests
private. Hobbies— I have none.”
turough the bewildered:

. "I am available for unemploy-
ment, but unable to find any at
the moment"
to the sinister:

“I had to have an operation
to correct a double hernia in
early September and Z am still
recovering from this. If I do
not find employment in the
near future I will probably
enter hospital again to have two
wisdom teeth removed.’

Fortunately, Mr High am re-
ports. recruiters interviewing
at tiie campuses this year were
compensated by the occasional
inspired performance. The
prize should probably go to
the student who, oh being asked
what he did in his spare time,
opened his briefcase, produced
a bottle and two. goblets and
answered: " Home-made wine.
Would you care for a glass?”

Hunter

HEADHUNTERS Korn /Ferry
International are in toe market
on their own behalf for some-
one to join as a director of the
group’s London company. It al-
ready has senior executive-
searchers specialising in oiil and
energy, electrical ■ and elec-
tronic engineering, and com-
puters, and another specialist .
in financial services is on the
way in.

Tbs idea is that toe director
now being sought wall bring in
thorough knowledge of and con-
. tacts' in another broad indus-
trial .field and so increase
Korn /Ferry’s range of specwfl-
isatkms. But nobody is yet sure
what the new field might best
be.

Fast-moving consumer, goods
is one possibility that occurs to
Sir John Treiawny, the London
company’s deputy managing
director. Consumer durables is
another. If the candidates come
up with other, brighter ideas,
then so much the better. The
only condition is that whatever
the new specialisation may be,
it must offer scope for recruit-
ment of executives on an inter-
national, scale. ■

Because of this Sir John wants
applicants to have experience of
general management in a multi-
national operation within the
field they propose to cover as a
headhunter. They should also
have been successful in selling,
and those with experience of
search consulting would have a
distinct advantage;.

Success tn the job would earn
fairly quickly the opportunity to
take shares in - the' U.S.-based
Korn/Ferry International group
and rise to vice-president status
— or, as the London office pre-
fers to say, become a partner.

The indicator far basic salary
is up to £30,000. There will also
be a bonus related to results.
The other benefits include a car.

Inquiries to Sir John at -2-4

King Street, St James's, London
SW1Y 6QL; telephone 01-930
5524, telex 914860.

Consultancy

THE NEXT opening is for some-
one able and willing to market
the expert services of a London-
based consultancy specialising
in strategic advice to ozganisa^
tions in the telecommunications
field. Tbe job is being offered
by recruiter Geoffrey King who
may not name the employer. So
as always In- this column when
a headhunter keeps mum about
the client he promises to
abide by applicants' requests
not to be named to the employer
without further notice.

.“Knowing how to market a
consultancy is a very different
thing from marketing a pro-
duct” he says. ,i This particular
one isn’t big in terms of people,
but it’s already established
itself and now needs to expand
by making its aMll«, especially
in market and product-mix
strategy, known to top manage-
ment in all kinds of tele-
communications organisations,
public sector as well as private."

His idea of the best back-
ground ' for candidates is work
on the manufacturing side
which has resulted in a high
level of technical knowledge and'
also a broad understanding of
the industry, followed by tele-
communications. consultancy
which has included generating
new business.

Impressive academic creden-
tials would help and Mr King
think s— in my view superficially
—that because, the rest of the.
company , is on the young side,
the recruit should be aged
around 35.

Salary up to £25,000. Perks
negotiable.

Inquiries to Cambridge
Recruitment Consultants, la
Rose Crescent. Cambridge CB2
3LL; teL 0223 311316. .

Motors

BOB PEARCE of REP Consult-
ants is seeking a regional direc-
tor in the Midlands for the
vehicle-sales division of. a
British group, who will be
expected to earn the divisional
chiefs job within a couple of
years.

The region covers eight large
retailing outlets, dealing mainly
in cars, and a total of roughly
700 employees. Candidates must
have made profits in a similar
business, managing at least half
a dozen motor-retailing sites of
considerable size. The preferred
age range is 32 to 45.

Mr Pearce says that no firm
figure has been set for the
salary, but by estimate would be
a minimum of £20,0(K). The
-other benefits will Include a
company car.

..‘‘As I see it,” he -adds, ‘'the
sort of person we’re looking for
will be more concerned with the
promotion prospects of the job

than with the immediate finan-
cial rewards.”

Inquiries to him at 14 Barker
Street. Xantwich, Cheshire CW5
5SY; Tel: 0270 626828.

Lawyers

FINALLY to the Arabian Gulf
where three, jobs for , solicitors
or barristers with experience: in
commercial and company." law
.' are being offered by Christopher
Ley-Wilson . of Philip Egertoa
and Associates.

Two are wanted in the United
Arab- Emirates, each 'working
for a -leading bank; ' One of
them will deal with all the legal-
aspects of international syndi-
cated lending, of .which a large
proportion is apparently rotated
to Government. The other -will
be more "concerned with com-
mercial ami industrial bor-
rowers.

The third post Is. with., a
large legal practice in "Kuwait,
and the responsibilities are of
a broad commercial kind.

Salaries are not quoted, but
my guess is £25,000 upwards tax-
free. with the usual range of
expatriate perks. Family accom-
modation is offered for the two
jobs in the United ; Arab
Emirates, but there is a pre-
ference for a single person in
Kuwait.

Inquiries -to Mr-Ley^Wtisonat
178-179 Piccadilly. London W1V
9 DP. Tel: OI-499 2215; telex:
28146 REG G. ..

BRITISH TECHNOLOGY GROUP

btg was formed to bring together neb andNRDC as a major force to
stimulate investment by British industry in new technology and
innovation- In the Northern half of England it ope rate • through
Regio n a l Enter prise Boards. Expansion of the catalytic investment n5e
in that area necessitates the creation of several new venture manage-
ment appointments.

• the task is to identify or create investment opportunities, evaluate
their potential, negotiate terms, monitor performance and assist
company managements (sometimes as a board member) to
development plans.

• the essential need is for well-rounded experience in amariufacr
t aring company in one of the newer industries c ulminating in a profit-
responsible post Evidence will be required of creativity initiative and
numeracy A technical or fina ncial qualificationis desirable and exposure
to acquisition and turnroimd problems will be of value.

• age 30s. Salary indicator ^17,000 with car

"Write in complete confidence
to R.X Addis as adviser to the group.

TYZACK & PARTNERS LTD

.MANAGEMENT CONSULTANTS

IO HALT AM STREET - LONDON WIN 6DJ

Manager

International Bank
Leeds : £20,000+

A major British International Rank is to appoint a senior executive to control the
establishment of anew operation in Leeds and then to manage the branch. The
property is already acquired and dm appointment will Ideally be made by the end of
August.

The manager will have 80Ptoresponnb3ily for the rea Triimem of the initial s taff and -
for the rapid development of new business across die fill] range of recall and -
wholesale banking services which the bank provides, where there is particular
emphasis on the financing ofmtematkmal trade. In addition the manager will market
the complete range of the parent group’s international services.

The successful appficantwill be aged 35 to45witfaanettmpl^trackrerortTm
banking, especially in the creation of new business with an rntmtarinnal bias.
Experience of opening an indepe^embramdiaiiddegricpng the growth po tential
will be an added advantage.

The ideal person-will also beable to demo n strate the ability to negotiate at a senior
level with Government agencies, indigenous and other international banks and with
potential corporateclients.

Th e salary will be not less than £20,000 with a car, and tiie usiudfcinge benefits
associated with banking.

Please telephone (01-629 1844 at any time) or write-in c onfirfpn r^-Tn fftefir s t
instancefor a personal history form. W. R. Dalzefl ref. B.ll 13, .

1 United Kingdom Australasia Benelux
Canada Prance Germany Ireland
Kaly Scandinavia South Africa
Switzerland U&A.

Management Selection Limited
international Management Consultants
17 Stratton Street London WlX 6DB

Top Executives

'Robert Fleming; a leading Gty merchant bank, reqinresari
executive to manage the Bank’s Leasing. As well as the
management of the Groups leasing portfolio, responsibilities
will indude the development ofthe general leasing borinesa.
Applicants should he in their late 20% or eariy 30’s and have had
previous leasing experience including large ticket . hansactiors
covering both marketing and a dminis tr ati on. An accounting
background would be an asset but not essentiaL .

A highly c om p et iti ve package covering salary and other -.
benefits will be offered to the successful candidate. The bank
operates a mortgage assistance scheme.

Apply in writing enclosing coniarium vitae to:.

Tom. Phillips, Robert Fleming & Ca Limited,

8 Crosby Square, London EC3A 6AN. Tel: 01-638 5858. «

Executive Selection Consultants

BIRMINGHAAf. CARDIFF. GLASGOW. LEEDS. LONDON, MANCHESTER. NEWCASTLE and SHEFFIELD

Chartered Secretary

North Derbyshire - South Yorkshire Borders
5 figure salary + car

This diverse Group of Companies with ii
refractories have an impressive record of growth orver l

from agriculture to
e last decade. As a

result of these achievements, they are now seeking to appoint an additional
Chartered Secretary to assist in the further development and control of this
enterprise. Ac
have broadly
corporate matters.

relations etc. Experienced candidates must have the flair and confidence to
liaise effectively at all levels in an often pressurised and exacting environment
Long term career prospects are excellent as are-the company benefits including
re-location where necessary.

Ann Hill, Ref: 57234/FT. Male or female candidates should telephone in
confidence for a Personal History Form 0742-731241, Bonk House,

200 Queen Street, SHEFFIELD, Si 1UF.

Scrimgeour, Kemp-Gee &Co

Man baa of The Stock Earhangt

FINANCIAL SECTORS

We are looking for an analyst to back up our current research effort into Banks and enable us to
extend our coverage into associated areas. Ideally the candidate would have a couple of years
experience in the financial area - with a broker or institution - and will haw selling skills as well
. as a research background:

This is a chance for. the right candidate to join a leading research operation where Ttwards are
linked to overall performance.

Please write, in confidence, to .

John Hewitt, Scrimgeour, Kemp-Gee ftCa,

20, Coptoafl Avenue, London, EC2R7JS

TRUST MANAGER REQUIRED

lor

ROLBORK SOLICITORS

Ho I bom. Solicitors task competent Exseetive to handle day to-day^
administration of. substantial Treat* principally holding portfolios of qtioud
invsstmaou. Ideal candidate will . have experience with stockbrokers,
accountants or banksis. Previous legal experience not essential. This is s
newly created 'Position with successful applicant being directly responsible
to a Partner. Commensurate Salary end benefits.

Apply with lull curriculum vitae ut ~

The Partnership Secretary
Reynolds Porter Cttwnberiafn
Chichester House
27B/2B2 High HolbOm
London WC1V7HA

APPOINTMENTS

For Forex/LIFFE/ Money Market
appointments « all levels
discuss your needs, -at no cost,
with a specialise
TERENCE STEPHENSON
13/14 Little Britain
London EClA 76X
Tei; 01-606 6834
20 yean market experience

is espandingrapidlyahri requires aSemor
Executive, report^ '

who can: -V v : V\

• negotiate mStHnifficttfpotind deals <„
with both lessees and lessors
h_ : *:• develop and extend dis services; te ,
* cnnenl dienis : : : • < : > : r ; ;

30; professional and innovative; numerate; used
to aduevmg results and capable oftaking-up ;

cmce.

Reply in the first instance to
Nicholas Waterworth onOl-242 0965 or
writeTofisn at31 Sou
London, WQB 5HY.

Midiael Page Partnership

* RemiitnKntConsultaxds
London Birmingham Manchester

COALITE GROUP

ASSISTANT

COMPANY SEIIETARY

The Coalite Group wish to recruit an Assistant
Company Secretary to be- located at its Hea£ '
quarters in Derbyshire. The^Group has production
and distribution ' companies and the successful'.:
candidate will be required to assist the Company .
Secretary, with the full range of corporate, legal;
and secretarial responsibilities. Candidates should .
be in the age range 28/38, currently earning in' a
excess of £10,000 and must hold appropriate secre-
tarial, legal and/or accounting qualifications and
have experience as Secretary of a medium-sized
public or . large private company. Experience of
pension _fiind and insurance administration would
be an added advantage.

Non-contributory pension .scheme incorporat- ,
ing life assurance. Company car. ‘

Applicants should write for an application ."
form to: — -

Mr. F. Clifford, F.CCA*, MJBXM.

Company Secretary (SA/F) '

COAIJTE GROUP PLC

P.O. Box 21... ’ .,

Chesterfield • . ; ■_*

Derbyshire S44 6AB

Venture Fund
Manager

Salary in range £1 2,000pa to £13,000pa

The Welsh Development Agency tteoughilsJrrtislryaraf "
Invesfrnentraviskjn is ne^onsibSaftx-lhvesl^fijrKto
businesses bi Wales,^ ^by way of equity or loans. A new company
has been formed to invest risk capital in compares with growth
potential. II is envisaged tfaal many of these oompanieswil bein -
high technology. .

R^x)^ti^gtolhel^vestn^ert[»w^tteVertureFUndManagw ,
wSI cany out investigation, analysis and dewelopfnent of ftmefeng
packages. The work win include seeking out companies or projects
■and canymg out thenecessa^ background In v sflg a tionsmto
product viabOi^.

ft Is envfeaged thatfte successful appScantvrifl have had
experience cffwarwayntintofmecSum s te ed oo m pmiieswBigood
gro«vtor80oitte,ariiindaiBliBhdihgofouo^devsfc^inwnteto.
areas of hfgh technology andpgafbfy, but notnecessaily, a
qualification m Accountancy.

A car aBdwance Es pakfand ffie post carries ^ixwedks leave par
year.

Applicaffon foems tobe returned by 1 2XJ0 noon 18 June 1 982 are
obtainable from:- Personnel Depatnent, Wef^tDevefppmeot
Agency, Trelorest Industrial Estate, FWitypridd, Md Glamorgan
CF37 5UT.Tetephona: Treforest (0443^) 3S7L . .

U

j

j*

*'4

I

STATES OF GUE2RNSEY
ELECTRICITY BOARD

requires a

GENERAL MANAGER

to take overall responsibility for the day-to-day running of
. thi s im portant undertaking which generates and distributes -
electncity to me whole of the Island Community. Assets sire '
..iSSFr 60 ^? c w>ted ft £51 million, there is" ah Aflual turnover ■
“ £31 jroUhion. and the generation cf approximately

184 rotllioa upits per year. ■ Total staff in the region of 260
employees, -.j,

Ganffid^es,; ^ho . preferably should, rbe - over 40, ' must W :
.qualified engi^ers -and able to demonstrate a proven record
of .succesafc business, latterly in General Management itsX?-
Som e experience with the generation. and/or distribution of:

would be expeitted and engineering experience
should be manly of the heavy rather than the light Yaridfr "
, he .?i ven . lt > candidates with an additioMd
mtlouhnw qualification, tg. in business, finance^ iS
economics. -

Salary seale £a6^80-£20, 955; . ' .

■^PP^ation forms dan be obtained '
.from toe States of Guernsey Electricity Board, North Slri®
Vale, Guernsey (telephone Guernsey 40931),. .

™ll Ca S?^ Sh S uJ!d , b l se i t S m President States Appoint-

Mer' S Ul a^»°^a C0Urt “

V

Financial Times. Thursday June 3 1982

INTERNATIONAL BANKING

ANALYTICAL

TTirnr

With' strong Marketing ; and.
Sales orientation required' for
established financial, service
with untapped potential*

This appointment would suit
a self-motivated Financial,
Corporate ' or • Industrial
Analyst/Salesperson willing to
work hard to establish his or
her future*

Salary is negotiable but the
main reward will came with
the fruits of success*
Applications wilt be treated
in confidence.

Please reply wltK tv* to:

The Gbainim

T. R. INTERNATIONAL

LIMITS)

3 Heddon Street
London W1R 7LE

The Co-operative Bankp.Lc. is a fast
growing Clearing Bank providing theiuil
range or banking services. Due to the
continued expansion of its branch
network, we are now see&irig additional
Corporate Business Executives in the.
following areas:

North East based at Newcastle

North Midlands based at Nottingham
Sonth West: ■ f . ■ based at Bristol

E. Anglia/ : based at Chelmsford/

South Midlands Colchester

London JkSouth of . .

England based at London

We are looking for candidates with a
sound banking background who have had
lending experience in a recognised
financial institution. They will be expected
to continue the development of the Bank's
expanding corporate portfolio, working

dosefy with the Branch Managers in their
localised area.

Applications forthese positions are
irivited.from persons inthe age group
28-38 with a minimum of 5 years'
experience in the corporate field.
Remuneration will be attractive to suitably
qualified candidates, who will hold at least
an A.I.B. Other benefits wilt include
concessionary mortgage facilities, pension
^facilities etc.

Written applications, which will be
treated ronfidentiaffy, including a
Curriculum Vitae, should be sent to:

1C M. Farrell,

Personnel Manager,

Co-operative Bank Group,

Head Office,

P.O.Box 101, — — —

Balloon Street, Rank

Manchester M604EP. .1

LENDING MANAGER DESIGNATE

City To £14,000 + Benefits

■Our dient is die merchant banking subsidiary of a substantia] international banking
group.- The company Has expanded rapidly over recent years and to facilitate continued
planned growth they urgently .seek experienced Lending Officers:

Candidates will probably be aged 27-32 and in addition to a sound technical banking
- background will possess the necessary presence and self motivation to warrant early
promotion in a dynamic and fast-moving environment,

These key pos.itions carry a tt ra ct iv e benefit packages and give excellent scope for.
continued career development^ / ■,

Inthe first instance please reply *6 Malcolm Ji Hudson,

Hudson Shribman International

CoQegeHBIChai!ibefs ] 23 College HUT, EC4 01-2487851

Personnel Officer - MerdiantBank

cfffljOOOpa.

Finance Officer
[Adminisfrxition]

LONDON W1 c. £14,000 ,

AsarB5uhofkitemalprcxTXJi>on,akE«yvcxxincyhas
arisen in file Financing Department of British Gas, j

ayoungprofesskjrKdleammcuK^ngthefBxinGBSof
fhe Corporation.

The person appointed will be requredf to mtmqgea ,
small section concerned withthe administration and
control of a! transa c tions arising from ihe financing of .
the Corporation, both in international and domestic
markets: Ha/she will olsoprowde techracalsupporfoo
mcqorfhanang issues.

Applicants should be professionally qualified with a
degree. Experience in thecontrol oftreasury
operations and with computer based accounting
systems will bean advantage.

Salary will be wHh'nfiie range £14,394- £16,329 and
benefits ere those normally associated with a large
progressive organisation.

Please apply, quoting reference number F7036501/FT,
and giving full personal and career details, to:

Assistant Personnel Manager [HQ Services],

British Gas, 59 Bryanston Street,

London W1A2AZ.

BRITISH GAS

LINCOLN COLIEGE
- lUiwZtaland

(urfiVERsmr college of.

AGRICULTURE)

PROFESSOR OF MARKETING

Tha Council of -Lincoln CoBcoo.
University Collage of Agriculture.
Invites applications for appointment
of a Professor oi Mark King in die
Department of Agricultural Econ-
omics and Marketing.:

Applicants should hold an advanced
university dogma In. an appropriate
discipline. White direct academic,

I research and/or commercial export--,
anco In. the marketing' ot agncalturai
and horticultural products will be
an advantage, tna Council wril
welcome applications from cflndl-
■ dates whose - principal interests in
the past have bean m other areas,
but who also display outstanding.,
potential In the field of commodity
or consumer marketing or both. Tha
Council ; woufd .alto ba prepared to
Consider a short-term appointment
from an applicant who does not
wish to accept a permanent
position* • •• .

The appointment will be mode
within tJie existing 4 range of pre-
tea serial safarfes.

NZ$52,482 par annum, the com-
mencing salary being determined
by the College Council-
Expanses - of appointment rjJiP - .
burned up to specified, limits. New
Zealand ' Government auporannue-
tion teevallabte. ■ . •-
Further details and general Condi-
tions of Appointment are obtainable
from the. Secretary GenaraL, The
Association ol Commoowaaltii Uni*
varsities (Apptsj. * Gordon
Square. London WclH OFF, or from
Sib Registrar, Lincoln. Collage,
Canterbury, Now Zealand, whh
whom applications daso on tb
A ugust 1982.

BANKING OPPORTUNITIES

BUSINESS DEVELOPMENT £20,000+

A major irewnaifooal bank rvanires a profmtoro! butter at fenlar
msMaeiMBt tamt. to aenwaw and dmetop bustnere bi.Cemrel and
Eurtom Euro*. Applicant* should be mldSDX fluent ta preferably
F ranch -and . German, possess retannt quallftcatfcu and have at least
Aar years* sa w ertewee in martettMi bank sarvtcac to corpor a te and
bank diems. “

MARKETING— INSURANCE

c£l7,000

A iesdtam Intaroatfonal bade Is see Mng a madtedng o®ctr aged
early JO's with experMoce bi marteedno bank iervlMs to clients in
the Irixirance industry. Applicants mould preferably ba US. bank
trained end possess Ota appropriate professional and academic
analMcreloas.

FOREIGN EXCHANGE DEALER £10,000 neg<

Deafer.' ■ tonrigr oectiarwe and sterling. *«• tbrat H o ur yea»'
WM eaee required . by prestfufoos international bank.

FOREIGN EXCHANGE DEALER

£10,000

Foreign exchange ad -deposit dealer, ami WM BO'a, with three
years" experience m deaUau room, required by Mmretional bank.

BOND DEALER

£ 10,000

Undswittofl arm of IntenMtional bank raqolrw bead dealer, ape
bn material, wftfc twofthra* yare* axaertence in bonds. CD - * and
FRN'S.

LJC Banking Appointments Ltd.

170 BISHOPSGATE, LONDON EC2M4LX

01-233 9953

CHARTERED SURVEYOR WEEKLY

the new weekly Journal for the property professional to be
launched later this year by the Royal Institution of Chartered
Surveyors in partnership with the Builder Group needs

1 News Editor -

2 Reporters
2 Sub-Editors

to Join the team led by, the Editor-In-Chief, Michael. Hanson, as
soon as possible.

Plans are now well advanced for this exciting new publication,
which will bring together the standing of the RiCS and the
publishing experience of the Builder Group, both of which have
been established more than 100 years.

Only those with first-class journalistic abilities should apply for
these posts, but any lack of knowledge of the property world or
experience of weekly publishing may' be compensated by enthusiasm
for the project and. a dedication to make it take its. rightful
place as the authoritative journal for all property professionals.
Successful candidates will be well rewarded, and they will - be
working in modern offices in the Fleet Street area*

Applications (including CV) tor
Michael Hanson, P.O. Box 87, 1 Pemberton Root, ECffi 4HLi
Tel; 01-353 2300

IlF
i n i

Jn

if* I

Jv

rlllrilu W 1 1 fall Wi K^i 1 u r

T

mm

I.-l v: i i :.>• 4 > ; i j 1 1 w r \'j ‘- : |

WE PRODUCE FILM, VIDEO, AUDIO VISUAL PRESENTATIONS,
GRAPHIC DESIGN AND WE NEED A

GENERAL MANAGER

For a wefl-esuMished company vrttif multinational clients. The successful
candidore w* manage ell aspects of tire Company's activities, including
production, accountancy sod adniMsw lion- Soufiti njnnciBl and busifiass
experience is a aacessity, whilst an Interest in tha marketing field is a
. prerequisito. No direct axparianw in Awdte-ViauBl la neceseeiy.

Salary negotiable around £14.000+ ear.+*hara options available, dependent
an BKperience end aptitude. . .

Write emtoting a C.V. to?

• Box 'A78M, Financial Tbnee, TO Cannon Street London ECO* 0*1(1
or talephaoa: 01-G28 6423

P i, i

Corporate

Finance

Weaieloofe^ foranExeaitlve far die Makers and Acquisitions
Depattn^whidiispartoftheCG^^ -

'RirnTt-

The successful candidate, tAo should be notrmoretlian 29 yeazs of age,
is likely to have atleast tbieeyeais 1 experience as an analyst in a financial

or iuu^ ( mgnt msrihTtifin c o uet i ng auaripty nf I nrii istrips p rirnarily in fhft

US AbutakointbeUiCHeor sbe should have a sound knowledge of
accomiting principles andago<xlwiit2Dgst^e, as wdl as bdng capable
ofworidi^witiL a mimmum of supervision and participating in

Tbepoation ofecs the opportu m tyto wo i k inasmallspecalfeed team
and wouU involvevisitiiig the U.^A. at least once or twice a year. For
dbsx^tcan(£datotlierowouldbepF 05 pect 5 fbrpiomotion\vithintbe
Corpcrate Finance Divisiou or otherdepartments ofthe Bank. The
salaiyTSiIl be cou^petiiive and other benefits indude house mortgage
assistance^ nonrconnibuttiiype^^

PleasewritevriihafuEcumaJum vitae to

Rnssefl Smith, Personnel Manager '
Kldnwor^Bensonlimited,

20 Fenchnrdx Street, London, EC3P 3DB .

KmNWORT BENSON

MipmTiant Banlrers

Company Secretory

Around £15,000 lot,

This significant national group with a turnover approaching
£200m. is engaged in the distribution, retailing and servicing
pf cars, commercial vehicles, industrial and construction
equipment; automotive parts and accessories; vehicle and
boat hire. The successful candidate, will join a small head
office team, and be accountable to the Finance Director. -

Candidates, Chartered Secretaries, probably 30 to 40, should
be able to offer successful and broadly based experience and
now be seeking greater responsibility. The post offers ample
opportunity for increased managerial involvement

Fringe benefits include car, season ticket loans, and cheap
lunches*

Please write to Ken Orreii, ref. B. 1921 5,

MSL Chartered Secretary, Management Selection Limited,

52 Grosvenor Gardens, London SW1WQAW.

7fis appointment is open tomenand waman.

Si

B

iHii

11

J

FINANCIAL DATABASE MANAGER

for a company whose services to the European Financial Community
are rapidly expanding. .

This new position will be based in the City of London, and will entail
developing new databases on financial securities and maintaining
existing ones. " A knowledge of the securities market and computing
experience are considered essential, though necessary training will
be provided in London and the U.S., foreign languages would be an
asset The position will involve day to day contact with our clients
and our information sources.

Salary and benefits are negotiable, and will be competitive.

For an initial discussion, please write or telephone in complete con-
fidence to':

Manny Kott or Anthony Prince

EDC Chase Econometrics

58-60 Moorgate Avenues des Arts 52

London EC2R 6EL 1040 Brussels

Belgium
(02) 511-68-64

(01) 638-0466

CHASE ECONOMETRICS/INTERACTIVE DATA CORPORATION

BANKING APPOINTMENTS

BRANCH MANAGE R(S) Salaries: £10,000

An interesting and challenging opportunity has arisen with a developing
British Bank, to manage one of their new branches. We would expect
the successful candidates to have; full A.I.B. several years branch bank-
ing experience and presently be grade IV or V. Age 28-32,

Please contact David Little

INTERNAL AUDITOR Salary c £10,500

A leading Merchant Bankrequires an Internal Auditor aged between 25-
35 years. Applicants should hold the ALB qualification and have had
some inspection experience. A knowledge of computer auditing would ■
be helpful. The usual banking benefits will be available.

Please contact Peter Latham

UK/LEASE MARKETING MANAGERS Salary: £20,000+

We_ currently have a senior vacancy with a major international bank. The
position is very much project finance related, covering the bigger ticket
transactions in the £4m pius category. A proven track record in negotiat-
ing is essential plus a good all round technical ability. Candidates should
be aged 30-38 years and possess a relevant degree or professional
qualifications. '

Please contact Brian Gooch

bnothan

BANK RECRUITMENT CONSULTANTS

170 Bishopsgate- London EC2M 4LX • OI 623 1266

.73GrewwwStr*ttoNDON Wf -0t493 8SM

- ^^ancial TLmS- Thursday June 3 1982

General Manager/Accountant

Oil

Middle East
Attractive Package

The company Is an international oil
corporation with extensive North
Sea operations as well as
exploration and production activities
worldwide.

They are seeking an individual
toassume accounting- and
administrative control of a small
middle eastern office. The critical
responsibility will be to provide
interface between local partners
and government offices and senior
management at US headquarters.
As well as the day to day running of
the office and small staff, duties will
include financial accounting and
reporting and submission of tax '
returns to government agencies.

Candidates must be qualified ■

A include financial accounting and

/V reporting and submission of tax ■

iyx returns to government agencies. SsHous

ZJLA Candidates must be qualified- FetterLaiK

Arthur Young McClelland Moores & Co.

A MEMBER OF AMSA IN EUROPE AND ARTHUR YOUNG INTERNATIONAL

accountants with some staff
management experience and well
developed communicative skills.
Knowledge of oil or related
industries would be an .advantage
but not essential. Previous overseas
experience is not required. The
- position offers married status and
would be suitable for families with
young children. Age is indicated as

Please reply in confidence
giving concise career and personal
details and quoting Ref. ER512/FTto
J.J. Cutmore. Executive Selection.

Arthur Young McClelland Moores & Co.,
Management Consultants,

RoHs House, 7 Rolls Buildings,

Fetter Lane, London EC4A INK.

ARGYLE

DIAMOND

MINES

DIAMOND
SORTING STAFF

AUSTRALIA

ABGWE DIAMOND MINES WT. LIMITED is a company fumed to
1 manage th* operations of Ashton Joint Venture.

In late 1979, die Ashton Joint Venture discovered a major diamond deposit
at Argyle, near Knmnmrra, in the far noth of Western 'Australia. Evaluation
a£ the deposit is continuing and.it is anticipated that a full scale plant will he
constructed during 1983-1984, with producti o n scheduled to commence during
1985. Rom late 1982 production on a limited scale wfll be from associated
• alluvial deposits.

The company is now seeking the sendees of a number of people who have
experience ht the sorting of rough diamonds.

Ideally applicants should have a minimum of 10 years’ experience, hot those
with a lesser amount should not be deterred from submitting an application.
People who do not possess relevant experience should not apply at this stage,

GENERAL INFORMATION

These positions win be based in Perth and wfll be career appointments. Perth
is the capital city of Western Australia and has a population of approximately
1 million. It is situated in the south western corner of die State, and enjoys
a mild climate throughout the year.

- Salary will Bimrnmmnte with qualification! and ex pwienm .

ExceUent conditions;, including contributory superannuation scheme, nan
< contributory accident insurance coverage and generous leave entitlements apply.

1 Travel and removal casts on appointment will be borne by the company. _

Please apply in writing, including a Resume of personal / \

details, qualifications and employment history UK j a j

- The Personnel Superintendent,

Argyie Diamond Mines Pty. limited, ^ ^

Private Bag No. 11, ARGYLE

WEST PERTH, WESTERN AUSTRALIA, 6005. DIAMOND

MINES

SAUDI ARABIA

Chief Dealer

Leading financial institution in the Eastern Province
requires a very experienced Chief Foreign Exchange Dealer,
familiar with all aspects of spot and forward
exchange as well as deposit dealing.

The ideal candidate will be at least thirty five years old and
will preferably have had general banking experience.
Furthermore, candidates who wish to or have recently
retired from active dealing would be suitable.

O -

Duties will indude, aside from dealing, improving the
organisation of the dealing room as well as hiring and
training of junior dealers.

Actual dealing will be more orientated towards corporate
rather than interbank clients.

O

Further banking responsibilities will be available for
the right candidate in the medium term.

•

Tax-free salaries, free accomodation and an attractive
benefits package will be offered to successful applicants.

Please reply in confidence to:

Ml Alan Wood

8, Crosby Square, London EC3 A 6AN.

All inten.ieu's a il! be held in London

BANK OF BOTSWANA

MONETARY ECONOMIST

Applications are invited for a senior post in the Research Department of the Bank of
Botswana—which is the Central Bank of Botswana.

The post requires an economist with considerable experience in the following fields:

(a) Monetary and Banking Policy

(b) Investment of Foreign Exchange Reserves

(c) Interest and Exchange Rate Policy

(d) Credit Control Policy

' (e) Balance of Payments Problems.

The incumbent will help to formulate advice to the Governor of the Bank and other
parastatal bodies on issues of a macro economic nature.

The post is available immediately. 1

The ideal candidate will have the following academic qualifications:—

(a) Pb.D. plus three years’ relevant experience OR

(b) M-Sc. plus six years’ relevant experience.

Salary •

Approximately P29 000 including Inducement Allowance plus 35% tax-free gratuity,
passages, education allowance etc. (Current rate of exchange: Pula 1 = U. 5 . Dollar
0.9702).

Applications including a curriculum vitae should be sent to the Director of Administra-
tion, Bank of Botswana, P.O. Box 712, Gaborone, Botswana:

Further details can be supplied on request

EMPLOYMENT CONDITIONS
ABROAD LIMITED .

An International , Association of
Employers providing confidential
Information 10 its member organisa-
tions, not individuals, ntiadng to
employment of expatriates and
nationals worldwide.

01-637 7604

APPOINTMENTS

WANTED

EXECUTIVE, BANKER

41. married. West German, looking
for long-term executive position in
Banking. Industry or Financial
Management In Europe or overseas
(exci. Middle East).

Extensive experience- hi executive
positions In banking, shipping and
financial administration. Accus-
tomed to negotiating international
business at high level with full

responsibility. . German. English
flusnt, Spanish basic.

P/eas e reply to:

-. Box A7B7Z, financial Times
10 Cannon Street, London EC4P 48Y

Accountant-General

Up to £17,835 ' , .

substantially tax-free

★ To serve as Head ofTreasnry

•k To cxvordmatB afl&e Govemrncaalfs accxamtiog
work

TopHjdmariieannnalflffiavtfffa

Assistant Auditor-
General (Development)

Up to £16,180 .

substantially tax-free

★ To manage and audit the DeveLopmeot Farid

Candidates must be ACA, ACCA, ACMA ordEFA.
Bor the former post they should have at least 10 years
poet qualification experience and be aged between 40 -
and 55 whilst for the latter they should have at least
5 yearn post-qnaUfication experience and beaged
between 30 and45. Accounting experience in the
public sector of a developing country would be
advantageous.

Benefits

★ F Bm P ga5 ^B^^ w ^ g dfngr?wTdiipn > ithftlfdgy i Pre?te

★ Generous paid leave
Education allowances

★ Subsidised housing .

k grant

★ Interest freecar loan.

For fhTI details and application form write or
telephone Linda Mitohell on 01-222 7730 Ex£3714»
quoting YX/109/FT for the Aixotmtanfr General
post or 'YX/401/Fr for the Assistant
Auditor-General post.

Crown Agents

The Grown Agents for Oversea Governments
& Admini strations, ReeroitmentDivirioD,

4 MlUb a n k, London SW1P3JD.

A Saudi Arabian Eastern
Province Manufacturing,
Marketing and Service
Organisation requires:

A Head of Finance and Administration
Salary Stg. £20 j000 per annum
Tax Free ■

He will report to the general manager of the organisation. He
must be a professionally qualified CA, ACCA or ACMA with
considerable experience in ' computerised accounting systems
(an IBM 34 is being used), manufacturing cost accounting
and management information systems. He must be a tough
disciplinarian, setting up internal controls and adhering to
strict reporting deadlines. He must be capable of working
with a high calibre management team and yet at the same
time ensure that 'budgetary and internal controls and admin-
istrative policies are adhered to. Some overseas travel is
involved.

This organisation is still in its pre-opera ting stage and provides
a tremendous challenge for the. right person. A minimum erf
ten years’ post qualification experience is required.

Please provide a full cv with salary history, positions held and .
full description of duties and responsibilities in last two '
positions.

Preferred age range 3345 years. Other conditions of service — '
renewable two year contract, free .car, free accommodation,
business class return air fare, to UK every four months for 14
days leave. Married status possible after initial period.
Applications in own handwriting must be received by the 12th
June.

Reply Bor 47871, Financial Times

10 Cannon Street. London EC4P 4 BY

SEARCHING FOR

THE RIGHT IOB?

wHch some 70% are otoinedfrom the iBipubdshed job market.
Telephone for a free confkieTOd appointment for an assessment
by a consultant, or send usyourcY.

0CHUSID ’ ’

S r.V 1 Hand*** WM28 0089 .

Career Oxjnitftig SuntySaft^Pkod^Pbia.

^areahosped^dSki^Oiitpiaecaiienifforoi^tohatkxi^thioij^ioiir ■
affiliated oxtoany Lander Corporate Services limited. Addressasabcwe.

m^titefoOov^ appointments:

Price Adviser

from £19,700 pa. tax free

Toi±yam^roJenftedevEk)prnQt
ofcontBwenawe pfensto imptemert

iraa3na^priracof*ds.ThesUccessfii

and a^rasha^Theabil^
trainragtoaiipto^

ccrntMn^ions of Marketing, Fmance or
Economics wffli several yearsexperiencefn ;
thisarsirnilarfiefdss^ .

supervisory le^Agoailaiowled^ofthe
ArabfcbneagBWJuldbeideaL

from£144QQp.a. tax free

studies as needed irt other, economicsectors.

These wb ba*elor (^married posffions whichcartyabove aven

v import an cebfthe ^p a nbrafe. Non Arabtespealdfg c arirtk tatos \
shouJdnatWdeterred frptnappiying. \ > ■./* ■

A Masters Degree in Commerce/

Economics or eqtivalent strongly biased on

. financial analyse blether with a ni^riber of

years practical experience in this field and a
gassdkricp.tledga ofthe Arabic Iar®jage will be

scandffibnsraffeaflTgttB

Wfe! Interviews wS be aaidifetecl&u .
London tiring the weak ■ \-r t! 1

cotnn«ncir®21JuneJ982:-''‘ •. \ f

copies ofqua&fcatfoi

KSl, ■ on fiiese appointments, or editor a
fVL confidents Personal Histoiy Form,
off-. A&ACanaJltanfsLhi,

FAv ."lO Lithe Porfland Sheri:

iixxtonWlfJbOF. ■ ’

V Teh 01-631 4184. . . >

atouldbesenttoAiyaKint’ ■- .. Teh 01-631 4184

VBhltSCtbduisertD^VSsB^X^rttiSSUutifilS Telex: 8956538.

ERI

Accountants/
Financial Analysts

Specialists in rscrnitmeiit
jbr the Middle East

Gulf

Our Public Sector Client, situnfedin. a safe andptqwilar part of flieGulf^ is rapidly
developing its control function, and is currently seeking young, qpalifiad
accountants, CA, ACCA, ACMA, to fill the following key posts:

Chief Accountant Finance ’ caefcCHu

Chief Accountant Treasury caecon)

Chief Accountant Management Accounting (Hat Gsusj

Chief of Computer Systems (neccs)

Senior Internal Auditor Computer Audit (Kecsmc)

Internal Auditors (Bs&QS)

Financial Analysts (RetrB)

The work and social environment is ideal for young expatriates able to shoulder
responsibility and keen to make a significant contribution, away from the frustrations
ofhigh taxation andmass unemployment, in an area where effort is justiyie warded. For
some of the posts a knowledge of Arabic vfrould be an advantage.

In addition to generous tax free salaries (up to £20,000) fringe benefits include
agreeable working hours, furnished accommodation, car allowance, educational
assistance, free medical attention, home leave, etc. Two year contract, single or -
married status.

Financial Careers
in Saudi Arabia

Progressive major Saudi Arabian Construction and Engineering firm
is expanding and offers the following career opportunities in Finance.

INTERNAL AUDITOR

Establish internal auditing systems to promote accuracy , and reliability
with accounting and operating data, compliance with policies and
measures to judge and improve operational efficiency. This position
requires a university , degree in accounting with a minimum of 10
years’ experience in internal auditing with three years as a manager
and bi-lingual ability in Arabic and English.

FINANCIAL ANALYST. ;

Perform feasibility studies and tests to ensure soundness - of proposed
projects and . investments. The successful applicant will have a
university degree in finance or business and seven years’ related
experience with a bank or investment company. Bi-liogual ability in
Arabic and English required. -

COMMERCIAL DEVELOPMENT MANAGER

Perform feasibility studies, search and consummation 'of acquisitions.
These investments would range from real-estate to established business.
The successful applicant will- have a university degree in Business
Administration or . Operations Research with a minimum- of 10 years’
applicable experience.

We offer an excellent salary with generous benefits including housing,
free medical care eic. ; Please apply In writing with complete c.v. to:

Mrs. M. A. Peers (Dept TO - '

rpci TENHA PROCUREMENT & SER VICES LTD. -

' CP House -

97-107 Uxbridge Road.Londwi W5

affi&atedconpany Lander Corporate Sennas

Financial Times Thursday June 3 1982

THE ARTS

Whenever discussion focuses
on British jazz; musicians worthy
to have toe epithet “world
class” applied to them two of
toe., most oft-cited names are
: Bobby WeUtos and Boy
. Will ia m s. Wemns, an idiosyn-
; cratic Spinner of an gnlnr
. phrases on toe tenor-saxophone,

: is remembered parmnountiy for

■ his contributions to Stan
; Tracey’s Under Milk Wood
! recording in' the mid-1960s JEmt
I. In. recent years has enjoyed a
: • much - acclaimed renaissance
: leading his own group. Williams
; has, since the 1960s, when, as a
; member of the Alex Welsh hand

■ he shared toe stand on tour with
■' the legendary Dickie Weils,

steadily consolidated his right-
fully earned position as one of
> the country’s most acconzcditoed
• trombonists. Both are on their
' highest form on separate albums
from toe Edinburgh-based Hep
labeL

r Primrose Path (Hep 2012)
came about as a result of a Jazz
Centre Society tour Wellins
made with American trombone
player Jimmy Knepper in 1980.
Kneppefs very personal style-
fast and unsymetrically phrased
—compliments, not dases with,
toe equally individual Wellins.
They indulge in eloquent har-
monising on the rarely-heard
Vernon Duke tune "What is
there to say? ” which is given a
graceful treatment, and have
some neat exchanges on Knep-
per’s “ Latterday Saint,” one of
three of the American's composi-
tions included. Wellins is paired
just with pianist Pete. Jacobsen
an Monk’s “Bound About Mid-
night ” on which there is some
none too abrasive “free" play-
ing. Jacobsen, who at times
sounds over-recorded, asserts
himself on all tracks with his

Record Review/Jazz

Kevin Henriques

Happy sounds from
the local talent

Talley’s Folly/Lyric, Hammersmith

B. A. Young

expending £3.50 on a truly
worthy cause.

More happy sounds on Hit
that jive Jack/ (Groove G101)
from the West country group
Groove Juice Special which
has taken jive music to its
besom. Jive, recently brought

New York
award winner
travels well

she is anxious to keep hidden
from him. It is the solution of
this mystery, and toe reconcilia-
tion. between the two, that occu-
pies the evening, and it occupies
It amusingly, tensely and — dare
I say it?— sentimentally.

Bobby Wellins— world class and British

bosom. Jive, recently brought Jump on the nest train for
to public consciousness by Joe Hammersmith, where Lanford

Jackson, is really the mixture Wilson’s Talley’s Folly, PuJitzer P*7ce md Hayley Bulls as Matt
of swing, blues and Tin Pan prizewinner and winner of the 311 d Safiy as sonwtimg to re-
Alley purveyed in the 1340s by New York Drama Critics* Award ft , 15 , Wr . Pryce . w “°

musicians such as Louis Jordan for best play, has made it be- S»ves the innoauocion, a nd he
and Slim GaiUard. Here seven laied appearance in London. *>es it without the «nbarrass-

instrumeniaiists plus two Wilson learned his trade off- men * might so easny provoke,

singers (all renowned in the Broadway, and indeed still especially when he makes a joke
Bristol area) get stuck into 13 writes his plays for the Circle ?®S n n tW]Ce

tunes on which to© instrumen- Rep, of which he was a co- ^ * ast : *? a com '

tal playing conveys more founder with Marshall W. P®* 116155 M 25*£ 0 I5? i S

successfttfly the low-down. Mason, his director there and a ugMsammer^ frock and toe
happy spirit of jive. For me at Hammersmith. But there is P“ y begins. Bath are ftccept-
singers Ray Bush and John nothing eccentric about this Amencans; but Mr Pryce
Skues seem stiff and a little play, apart from its being in 1135 “® advantage of
srif-consrious delivering toe one long act introduced and ex-European Jew, so that
sort of zany lyrics which people tailed by one of toe players, theT ® 18 , mor>e ™ irr

like Jordan and Gaillard got who tells us what we’re in tor 2*-““ aJ3cl ,P o f 0 subtlety m his
away with so zestfully and with the house-Ughts up, and ■ Mr “ a5 ? n s dweetaon

naturally. then confirms that what he told ® and the d^ign by

However toe band’s heart is us was true. Grant Hi<±s of the tree-

dearly in toe right place and The play is a two-hander in _ J** atbons ‘L,

the inclusion of Jordan classics one continuous scene, developed f f
such as “ Five Guys named with a skill that should put all : ^fa* 56 ****’ Wlth lts

Moe” and “Saturday Night our short-winded writers to generous aetaa.

Fish Fry ” (though here shame. It is set outside the boat- - My account of toe play should
4 ‘ Fitterday " is substituted for bouse on tfie Talley estate, the hot give the impression that it
“Saturday” for complicated Talleys being a Missouri family is simple or straightforward. It
reasons!) ensures humour Is whose fortunes Wilson is follow- is full of little subtleties (note,
never far away. AH the instru- big in the manner of Eugene for example, the significant ease
mental work, notably Nick O’Neill. Sally is the only Talley with which Matt lights his
Cooper on alto and A1 Raitt on daughter. In July 1944 she is cigarette when recon criiatron is
tenor, is a needed reminder to a nuree to a- hospital in Spring- signalled), and It avoids exces-
Lond on-based jazz writers of the field - Missouri, and though she save emphasis. Sally's imagined
flourishing jazz scene in the ^ 31 there is no sign of a pos- fault, which results in her be-
West country sible marriage. mg unable to have babies, might

h™/ But she has been pursued by so easily have been attributed to

a 42-year-old Jewish accountant, some real social disgrace; but
^^rthy^bums^Amancan Matt Friedman, of Lithuanian no, it was a simple Alness that
ioisTw SSL. JESS: origin, whom the Talleys regard just seemed disgraceful to- toe
“fi* as a Communist traitor. Matt hypercritical Talleys. The hyper-
.*5® reckons he has once had an critical Talleys are only just off-
appeared with at last October’s affair" with Sally, but now Sally stage all evening; what they
Camden Jazz week. Here js keeping him at arm’s length, were doing while Sally and
Jordan confirms anew that she is There has been some apparent Matt were at the boathouse is

Trevor Humphries,

and comping ' behind mentioned so far, singer Kim the kind I prefer to listen to one °* toe foremost jazz disgrace in her past life that told in another play.

Knepper and Wellins. Lesley . is a comparative new- through a glass darkly. But, singers, past or present Her

On Something Wonderful comer. My. initial encounter like Benny Green who writes “ FH remember you ” is chilling
(Hep 3015) Rot Williams Is w*to her voice was at the first on the sleeve cover, I have per- and the interplay between her-
teamed with Eddie Thompson last) Magnus Jazz Festi- sonal reasons for not upsetting self and toe trio on Charlie

(piano), Len Skeat (bass) and val to 1®» where she sang the National Westminster Bank Parker’s “ Confirmation," where

Jim Hall (drums) tor seven with the National Youth Jazz which has toe infinite wisdom she does some prodigious

familiar standards and a Orchestra. On Store it up 'til to allow members of its staff scatting, is remarkable. Pianist
Williams original For the morning (Zodiac ZR 1016), her to unwind playing jam under Steve Kuhn alternates, as he
most part, the listener’s atten- " 8010 I*P debut, she is backed its official aegis. More impor- did at toe Round House, be-
tion is held firmly— as on the energetically by some of her tantly — and most seriously — tween impeccable, sensitive

Welllns-Knepper collaboration former NYJO colleagues and all toe Nat West Jazz Band’s accompaniment and over-long

Hayley Mills — something to remember

Armide/Spitafields

Ronald Crichton

Spitalfields Music one. His simple-seeming but Crusaders '(the story is from la liberty *’ was melting. Much

—by the variation in present- straightaway impresses as a. engagements are in aid of solos of almost embarrassing Festival opened on Tuesday subtle scoring cuts through toe Tasso’s Gerusalemme liberate ) else was vividly dramatic, with

ation. On the dashing “Cheek Jazz-tinged vocalist of power chanty and toe proceeds of bombast with toe first of four perfor- church’s resonance better than is Dermissible To keeD her in moments when the cutting edge

to cheek" Williams is muted and versatility. The former this, the tends second A rt Farmer, another recent mances of Gluck’s Armide— the one dared hope. One can’t say throughout suhstitut on the middle voice grew a

throughout but is always quality is amply demonstrated go to toe Mental Health visitor to toese shores, is ^ opera, i believe, to be the same for toe words, but toe throughout, substitot- gxw

mobile and in full command., on toe title track (which she Foundation. heard mainly on Angel-horn on rtaged (as opposed to being singers must be left far toe ««. Mumehaha bandeau for little monotonous,

“ Pm getting sentimental over co-wrote) and toe latter on an The LP is a bright package A Wor L^ Art (Concord CJ given concert performance) in moment turban after the interval, is un- Miss Palmer is sturdily sup-

you,’’ done as a bossa nova at unusual version of “Love is of a dmen timesTneariyaU 179 )- The exception is “Red the Hawksmoor church of Christ WnW c iMfried Warner w W15e ' .Amndes mtense femi- ported by Sally Burgess i and

toe start has some interesting here to stay” on which her hackney ed warhorses of toe Cross," anotoer Parker compos- church. Richard Hickox con- tb^ desteSr^ DKiTSmt p«S Ma ^ e 85 ?«J Uin i d '

tempo changes, and on a couple P*®* Reese-mspired phrasmg Dixieland repertoire but aH put tion. on which he uses muted ducts, toe producer is Wolf fir^tr^ng SSJZJE? * smgers) ““““

.of tracks Eddie Thompson comes across forcefully. Also over with the obvious and trumpet to great effect The Siegfried Wagner. The church ‘ ^ ^ beauty on trust doubling for toe spirits who try

utilises (effectively in xny view) oferecl are a jolting (to Ivor enviable enthusiasm of whole IP is an agreeaWe imx- was full toe evening warm, but doure ol the East end with its Gne undoubted success for to wayl^ Ubalde and toe

a synthesiser which con jures up NoveDo- worshippers) of My amatans plus more than a tttre 01 standards and originals both music and execution made screen vff gaaftek Dinars Producer and designers is the ^ a ? Ish Knight ’ Stephen

almost .a Mantovani-bke string dearest dear" and a furious, soup^ 0 f professional skilL to which Farmer brings his the attendant discomforts and a ^ev seSn ratheT tohave disputed' fourth act, which Roberts and Keith Lewis very

section. A springy opening crisply attacked I cried for Adding a dash of gold as guest immediately identifiable sad- long sit seem of little account. tafc iL ^ sticks, in. the gullet of commen-. hkable as those characters, by

chorus by Williams with Skeat you.” No doubt that Kim Lesley on “ New Orleans ” and “ China- toned lyricism. On a skating it would be 4 wise to book for and builders’ mess tators who still haven’t worked Raunond Herincx as King

only on “ Isn’t it romantic?” can belt out a tune, but impor- t0W n*T- is another of Britain’s version of Irving Berlins the remaining performances — ad^me a three-sided platform roun d to Italian or French Hidraot. by Lynda Russell as

is another device which exera- tantly she shows she can bring acclaimed . instrumentalists,- “Change Partners” he proves tonight (Thursday), Saturday beside and behind toe orchestra Baroque opera. This act, show- a melodious Naiad,

plifies ..the obvious thought delicate appreaation to lyncs .uub^eter Kenny Baker. His that to e larger version ^af the and next Tuesday. »nd a white screen of swinging a Banish Knight and his As Hatred, who so cruelly

which went into toe production —which makes her m-coucewed spirited playing on the latter trumpet can be played wto duck’s Amide was written doors with an inner stage that companion Ubalde adventuring calls Annide’s bluff. Linda

of this top-class, all-British ™etoun^tompo yemon of an ^ the massed band’s equally fleetness. All facets of his f 0r Paris (1777) but, tmlike for is a white box — now as con- through the magic garden to Finale triumphs over billowing

Hollda V'S Fme and .JJieUOW mrMlnnmr Af hrripc warm Jvncal fTTv/P a fft SDOW- A • * ■.« _ rp^niP T?pnand rmm ArmidAq ^

moments when toe cutting edge
on toe middle voice grew a

National ffpfq TT^irlo /Wirrmr^r-A TToll out a Ubretto by Scribe instead But- Mr Wagner’s -claim that for comedy — Quinault and

INauondl geu> JVlltSUKO U CH1Q3./ W lgmOlG XlHil of turning to Colette. But not the action reflects the trans- Lully used a similar type of

a cnnricnr 1 — 1 quite, for the prestige and formation of her state, of mind ” contrast in the Charon scenes

A bpunaui Andrew Clements influence of toe French is on^ded. Qitoxautt had other ' of their Aiceste.

Tbfe National Theatre has at tragMie-lyiique. placed so JSSS The great role of Armide toe

last forged links with a com- . . . , fitmly on the rails hy Lully and ^ects, , sorceress, pasisonate, wayward,

mereial sponsor. John Player Is The firsttwo of M5ss UcMda’s there is never anything super- could be focused tototemgy Quinault, were sttil oowerful . Je martig wow- painfuLI y awa ^ that Renaud

to invest £240,000 over the next recitaSs in her Mozart sonata fluous, no ingratiating fosses; dramattc effect, not onSy m the enough to tempt Gluck to onl J loves her when he is

three years in helping the series have been comprehen- yet every passing chromaticism sonatartself biit in toe C mm measure himself against them. magicked into doing so, is taken

j a e- vahrohr nnuiui nn (Me mum hw i c - wp.t'pHprl fnr fts cxwresfnve fantasia K.475 that she nfihfiy As Max- T/mnert nnints out m of Lotas XIV. For the DaMets ^ Thimu Tir n ^v.n n

Ubuoi &iep UL CIIUUIOUK u uuicuu t mM . „ A-nArw Vnrftxr “ is uluicuu not oecaustj Ji is

by Quinault written for Lul^ m whl F h Glnck lavished long but because it is frag-

some 90 years before, rather as rf Glu^ so ™ 0 of , bisbesbesU most im- mentary. Mr RolfeJohnson

though Saint-SaEns had set em^ona^ inmoaie ot uiucks mediately attractive music. Mr sang toe second of his big num-

Voltaire’s Samson or Ravel had 3 Wagner plays it, surely rightly, bers particularly weU and most

out a libretto by Scribe instead But- Mr Wagners • claim that for comedy — Quinault and sensitively conveyed toe
of turning to Colette. But not ihe action reflects the trans- Lully used a similar type, of kni ght’s return to his. senses. It
quite, for the prestige and formation of her state- of mind ’ contrast in the Charon scenes is good .news, that a recording

influence of the French is o nesided. Quinacilt bad other of their Alceste. - ' is on the way.

tragMie-lyriqye. placed so s™ 53 * 5 we-ll-tbe hero Renaud The great role of Armide toe '

the nilsjy Lully and J? 1 *?** sorceress, pasisonate, wayward.

R.SX. awards

National to tour toe regions. As seively praised on tins page by Is- weighed; tor in expressive fartama K475 toat dbe ri^rfiy As Maar Loppert points out in XIV-

well as being toe National Demon* Gill and David toy. Ppt^tiaJ ev^ tock^ 5 L

S Leris XIV For the S ma ^ icied ' ml ° doia g *>• “ ^en At the annual general meet-
?toe^5^cc?are cSf^ by Felicity. Palmer. Worthily ing of the Royal Society of

^»hTHnn«! rather taken ’ t0 °- m sP lt e of the han- Literature, to be held on June
nave slow evolutions, rather j:___ _r *»,« i« n m

exposure for the sponsor — it is wga^td. xad qmddy responsive hestatas to call them failures concern to articulate each para- those masterpieces that have The costumes of A nuena a great poet, but as a librettist Bequest and the Winifred

also Player’s first involvement fingers perfectly attuned. In- when invariably they contai n graph, to tbe extent of extend- remained just below the Stubbs are all white — both he was admirably and unequi- Holtby Bequest.

In toe theatre, although toe comprehensible that the hall passing beauties. But it is utterly ing silences, had earlier given operatic horizon. Every opera- she and the. set designer may vocally clear and direct Miss The Heinemann nrize of

company is a major supporter should not have been full. characteristic of Miss Uchida the Andante of the C major, lover knows of it, many wish have looked at the work of Max Palmer’s diction in French as £2 000 is shared between James

of opera, ballet and music. For one who savoured Miss that on Tuesday she should K.545, a special, prayerful calm, or long to hear it a lucky few Bignens for the Parisian -pro- in other languages is normally Lees-Miinp fnr hia Moersw*™

The National Theatre will TJcJrida’s early London recitals, follow one of these, the opening In this first sonata of toe

visit ten cities this autumn with immediately after her prize in AHegro of the F major sonata evening Miss Dtoida demon- wc . ^ — — — ^ a** uo»no « wumusKana jonatnan

five productions — Don Qubrote, the Leeds competition, but who K.533, with a slow movement strated her abtiSty to produce time to time. At Spitalfields Baroque and contemporary occasional phrase from her or Raban for Old Glory (published

The Importance 0/ Being has lost touch with her recent of extreme poetic intensity, .and playing of a devasta tangly Armide Is excellently well sung references are ingenious, but her colleagues- Some of by Collins).

Earnest, The Voysey development, this - furnished a fina>e of confounding enigmas, effective plainness though, and played. Mr Hickox brings Armide’s tunic and trousers Armide’s music, I am told, was

Inheritance, A Midsummer evidence of that first promise and go - on to prove in the again characteristically, die the score, including pages that (and eye make-up like sun- transposed down, which no Alan Judd wins toe £500

Night’s Dream and Guys and being brought steadily to ful- C minor sonata K.457 that toe could not resist giving the look bore in vocal score, to specs) are a mistake. To show . doubt helped at the top but Hol-tby award for his novel A

Dolls (two weeks in .Bristol in fitment For all the originality over-excitement wfcfleb had main theme of toe finale a vigorous life. Gluck’s strong, the sorceress at toe beginning led to some weak notes lower Breed of Heroes (HodkJer &

October). of her ideas of interp retation, spoilt toe eariSer movement canny, irrepressible lilt. full invention fairly bounds at as toe turbaned scourge of the down. The celebrated “Ah! si. Stoughton).

THEATRES

AL8BRY. Atr-cond. S 836 3878. Credit
earai 379 6565-930 0731. Grp Jbks*
839 3092-836 3962. Eva 7 .3 Q -Th urs
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TOM BAKE*. RALPH BATES. PAULA
WILCOX & IRENE HANDL In HEDDA
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ALDWYCH. S 836 6404. CC 379 6233.
FW a Wt MWOn. ALAN HOWARD.
Best Actw; or the Year In

wedi mat 2 tor price of 1 on £B. £630.

GLOBE. S CC 437 1592. MonlFrl 7 JO.
7AS (Jane 21 7.00). Ma te Sat 4,0.
Pram Time 16 Coward's DESIGN FOR
LIVING.

FWT7TWS??

HAYMARKET THEATRE ROYAL. 030
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WORTH nr a Coat of varnbh. a
new play by Ronetd Millar.

tpQUA -stuftasbury Aye. CC 01-437
2663 . Mon-Frl E»W 8 . 0 . MaV Wed 3. 0
Sat 5.0 A 8J£ a ALAN aycm^t
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KINGS HEAD. _22S . 1916. _ Until Satl
Lunchtlmo 1 .IS. Eves Dor 7. Show S.

WYRE3 d
hr Mrs
dauobtars.

■ »a» open presented
KttMifltan's oaupMen

mrnm.

p ^ rrr uv T J i . ■ g . J . r - r rravwn

-SAVOY. S 01-836 8886. CC 930 0731.
Emil dm i 7 AS. Mats Wed 2.30, 53 b,
SJO. 8V30. MICHAEL FRAYN'S NEW
COMEDY NOISES OFF. Directed by
MICHAEL BLAKEMORE.

ST. MARTIN'S. CC BSE 1443.

Set 6 i-9. Bar open 6 pm. Pub prices
Mate all coats £3.

LYRIC THEATRE. Staftasbuiv An. BMC
OWce 437 3686- TeL Craflt card
blew a ccepted. glenoa JACKSON.
GEORGINA HALE in SUMMIT CON-
FERENCE. A new play by Robe-t David
MacDonald. Evp 8.0. MattSBt 5.0,

LYRIC HAMMERSMITH. S CC 01-741
2311. Eve* 7 JO. Thur Mat 2_50. Sat
4.30 6 8.1 S HAYLEY MILLS

JONATHAN PRYCE TALLEY'S FOLLY
by Lanford WKson. Directed by Min ha II
W. Maiuon.

ESCST’'

■Lu

rj j» ■! y CT i~m ■' ' )

PMIharmoolc Ore&ssfea-

mmesL n^m m

LYRIC- STUDIO: . Lye* > jpei SMIa GJsh
A Peter Evre In BERENICE by Racine.
Dir. Cbriftope' Fette*.

IKE by Racine.

i\n.t l aj j.iAif.i

Tims Mar 245. Satntby* 5
Apatlu Christie's THE MOUS
World's hMflest-ever .ran, 30th

Fully afr-condlttoned theatre.

USETRAP.

3th Year.

TALK OF THE TOWN. CC 01-734 5051.
For reservations or On entry. London’s
Greatest Night Out from 8 dri. 5 boon
or Top Merten incut THE TALK OF THE
TOWN GALA GALAXY REVUE (BJO).
with a cast of 35. JOE LONGIHORne
( 11 pnO. Dinner. Dancing. 3 bands.'

VAUDEVILLE. CC 01-836 8988. Eves 8.
Wed mats 2.45. Saa S 4 B, GORDON
JACKSON in AGATHA CHRISTIE'S
CARDS ON THE TABLE. Fully air
conditioned theatre.

VICTORIA PALACE. CC 01-834 1317-8.
01-828 4735-6. Evn 7.30. Mats Wed
A Sat at 3 JO. Limited amnber ot seed
scat* avail Ibis week. ELIZABETH
TAYLOR In THE UTTLE FOXES b»
LILLIAN HELLMAN. Credit cards
accepted- Gratip sales 01-379 E061.
MUST END JULY 3.

RTHUR M
Irected by

F.T. CROSSWORD p
PUZZLE No. 4,887 \

ACROSS

1 Portrayed an old northerner
appearing in an exploit (6)
5 Take a look at a bird (6)
9 An old game in a London
street (4-4)

10 Lunatic, vassal and I join
Alpine dub (6)

12 Just sound fit (5)

13 Marginal note m put in
placard (9)

14 Tactless, being left in Paris
( 6 )

16 See it go astray and flatter
oneself (7)

19 Mean to affirm how old one
IS (7)

21 Metrical foot from Mediter-
ranean island (6)

23 Bigoted, as an expensive,
book may be? (4-5)

25 Five with a fever becoming
blurred (5)

26 Catch part going to toe
north-east in reverse (6)

27 Honour a brace connecting
staves (8)

28 Men she upset as m 26 (6)

29 Follower of toe Old Man of
toe Mountains gets two fools
m (8).

DOWN

1 Go away and die (6)'

2 Nobleman friend's solemn
(9)

3 Heavenly body needing me
in bed (5)

4 Cuts in the same quarter
twice to overshadow (7)

6 Horse arid I smell sugar (9)'

7 Exercise soldiers? It could
be boring! (5)

8 Judge an instrument (8) '

U Land in the centre of Sisley
(4)

15 Fool’s gold that miners work
.for? <«)

17 Egg-preserver Is in a
tumbler (9)

18 Fine textile fibre for money
only (8)

20 Small case holding note on
the parson-bird (4)

21 Manuscript volumes com-
pany chops up (7).

22 River always running
between poles (6)’

24 Type of line to throw mud
at? (5).

25 A flower that could b
instrumental (5)

Solution to Puzzle No. 4*886

SOOQHliJ QQUHMEIIMia

ana b a □ □

BBQQL2Q EHOEmQBB
0V.B.VQ -B B: □ □ a
BQQQQdEiB □□D13HQ

a gt b b: a b m

uaua SHHUHEEBEa
a b -B a h q

BQE2BHBQBQH BQQQ
a □ □ □ B U B
□BHQBQ QDQDBI2QB

a a □ b m □ a □

SiBElQHB

n a □ q b a b

□aaaaQHB BHEBBB

Financial Times Thursday June 3 .1982

-:3

/

FlNANdALTIMES

MONEY BROKERS DIVERSIFY

BRACKEN HOUSE,: CANNON STREEi; LONDON EC4P4BY
Telegrams; FInanfimo, London PSATetex: 8054871
Telephone: 01-248 8000

Thursday June 3 1982

Mr Reagan’s

By John Moore, City Correspondent

W

XtJLM. B T 1 'llial* " KJ YY WEDNESDAY, 9.40 am.

1 w W ' exchange

-w -m Y ▼ . room, of the London

n/YAVlfln money braking operations of

lir fllMfl M Mercantile House is in uproar.

JLf.1 \/MU 11 11 1 mx ‘ Young men, ties loosened, shirt

KmJ sleeves rolled up. are yelling

PRESIDENT Reagan's hritf remains a cornerstone of ?'^ I ^K^ e S ^ v ^ s nmi * erS
round of bilateral visits in policy; and American reaction into telephone receivers.

Europe which starts this week to recent perplexities— notably In front of toem, their own

by mw seems to hold a good the FaUdands crisis and the personal switchboards are flash-
deal more interest, and perhaps new aggressiveness of Iran— ing limits. Oat of intercoms
also more promise, than the have looked very like fee other voices are booming
Ver saill es economic summit to reaction which might have been critic numbers and ensp com-
wincfa it is officially a back- expected of any previous U.S. mands. .‘Tt is a fairiy quiet
ground. In his welcome. Administration. week,” observes one senior

cordiaMty will be mixed This development of policy broker,
with more th an a little curio- has been a product both of the The hot house world of money
sity, far the President is President's own character and broking — where professional
anxious to alter the established of. political jnd -economic buyers and sellers of money,
perception, of him as a rather pressures. Mr Reagan came to specifically correuaes, are
simplistic hard man of the office classed as a popuHst, but brought togetherhy the brokers
right This is much more than his real strength is in persua- to afeieve the finest possible
propaganda. The announcement sion. His early triumphs with terms on their seals — may be
of the Strategic Arms Reduction Congress and the warm having a quiet week on the
Talks (Start), and the Admmis- personal relations he has estab- foreign, exchange side. But the
tration’s provisional acceptance lished with several European

of «ie exMns Salt treaty, are leaders show tt*. tte

much more than gestures; and H^nrv

Sj-SSS t^f e n in Z,E e r StaIemate ^2?<Sy hidtt« long hoUday

international agenda in other _ a _ „ roQ i.o^ « +»,« Tnr

has Just negotiated by far the
most important deal in the
group’s history.

Basely had the long holiday

Lnanartf Burt

“It’s going to be fan," says Mr John Bartahire, chairman of Mercantile

pictured la the dealing

Ussoogh fee acqtaiatioo. 6
Oppenheimer, Mercantile is a>
the least consolidating its post
taon among ;fee five: It .wfr ■
"dwd^iS:payTD0'&oan aronra- ''
2,000 to ' 4,000. In its las ',
reported financial' year, ending-. 7 ,
in April 1981, Mercantile,
dedared - pre-tax profits
{7.Jn. . •

. . At lie press conference when .
Mr Barksbcne tmvefled fee plan, .
the' «r w??. thick with; phrases,:
tike ’ ' “strategic- . objective, *-
.“ synergy" and “ precise fit w

Mr. Barkshnre stressed that
the more is part of a tang^eror '*
objective to develop the groaqt
as an imcTnationai finaacwf,;:
services organisalMra operatirq: -
througbont: the world's moneys;:
securities .and related marfeets.-

‘ He wants Mercantile to derive
no more than between a quarto: - :
and a third of its business from ;
any single activity, thereto’!'-,
improving the group's e arn i ng! :?
quality , and ' spreading thr't
exposure to what are high risl ,
-activities. - Over the last y eas{
the group bi£ - acquired tbreiv. -
commodity brokers, two money . '
brokers, and a U.S. broker ....

Mr Baricshire says of his deai v . :

114 A good persuader must be a weekend in the UK finished brokers, and a U.S. broker

The British Parliament is to Imtener, and Mr Reag ap when Mercantile announcedthat . through acquiring an interest in scrip issue and a string of tag for the sector, however. For when the new commissioia rates Mr Berkshire says of his deai

be the audience for what may does appear genuinely respon- it planned to acquire c^ipen- Telerate Inc, the American com- acquisitions. More importantly some time the banks have been came into effect, Mffls and Alien vvith Oppeaheiiner that “it if

prove the most significant new s * ve to outside views. The rapid belmer Ho m i n gs, a wad street muni cations network which Mercantile has managed to growing restive about fee level has acquired Guy Butler (Inter- going to be fun. Already oar

item: what is billed as a fresh growth <rf fee peace movement, stocfcOroKer and fund manage- enables dealers to flash prices show an excellent rate of profits of commission which they have national) far £10.7m and Mer- commodity ' people are talking

American approach to relations in tt*® U.S. as we® as in Europe, group, in a deal worth immediately across the world.* growth, more than doubling its paid to the money brokers on esurtfie House hots acquired the. to Oppenheimer.”

nuicuum aypiuoi.u iu 1 cmuuuy _ ■ ^ , _ , . , , ^ * ' I min.

with the developing world, with ^«3r effected po*wa«. »lm.

W 11 U LUC OC«ClU(IU >5 WUI 1 U, W 1 LU _ - ” 7i:~ *v 7 I unit,, __

a stress on. encouraging demo- » n« fe« » J r*a- The

The ambitious acq uisiti on earnings per share in the two their transactions. troubled Charles Fulton coin- For the future, he says tbai_-

ogrammes of the more sue- years to April 1981. After heavy lobbying they paay £6An. Fu lton bad Mercantile aims to remain tip

ssful money brokers have Money broking became an managed to persuade fee Bank ran into problems when its “fee financial markets we

England, which regulates fee fi na ncia l resources were understand. We have now. gofj

already given some indication ne 2£ acq na a rttan ce.

money brokers, to dmuco com- stretched by attempting to to put fee flesh on the bonef

of fee econo mic side of this . He ^ ias also had to learn from

tmirinniin share ratinps WHICH nave J«»rs e iy cue 10 me uunaouiiY oi « jcuumj iwu- — '^~rr — ** — iw «uub .

Commercial allowed th^to nse their shares foreign exchange and other massiOTS on se^rai. de^s and eaq?and into New York,. ; .. « our pirns.- Even so Mercan;'

— . r-vr. - — lodcof fee d^l tor acquisition purposes. The money markets. As market permit volume discounts. According to Mr John Bark- tile will be reacting to dmi^es

new approach, wife his recent to S sea riLJie trickwas to perauade share- rates became more volatile. The banks complained that shire fee 46-year-old chairman to fee nwmey marimts and ha?^

cali to LMdon tor an mitiative SSJUtaAffS plare^ to fel UK b^l holders that the groups’ money banks have turned to fee these reductions were hade- of Mercantile, fee sector is now Jte eye on fee emerging financial

to enemu^e better conditions conSiSto BaSS^taSrS broking magic w&drtb off oJ speciaUst brokers to proride quate, but the brokets argued polarising into Very large futures maricet. A^^entots ‘

for productive international her CongreyswnaL sMtak The comrnum^ Kecerray ixoo to- . flrmilr . aeepcs to fee finest nn.t/vthe. that fee incentive wouM be htoods. but learine room tor to acquire a UJK. stodferokei

holders that the groups’ money banks have turned to the feese reductions were hade- of Marcanfee, fee sector is now its eye on me emvrguig imaucim f

broking magic would rub off on specialist brokers to proride quate, but fee brokers argued polarising into very large futures market. Any attempts j

the businesses they were acquir- access to fee finest, up-to-the- that fee incentive would be groups, but tearing room tor to acquiTe a Ujv- stockbroker^

mid is no doubt seriously simply fent workaWeTA^ambi- nd Co (Ove^eas), the Hong Mercantile House’s shares, Wough fee^ development of £££? fe? SSn eSani br^f^d UtaCtt to to

intended. tious programme of reaxmament Kong stockbrokmg arm. of the first issued at 160p in 1979 were important international branch 'winch the banks did not want nowhere ce^T ^

_ threatens eafeer an endfess per- hard pressed stockbrokers Carr suspended this week at 420p- networics, ranging from Tokyo a?irw«dd^tocecoS«tito rpmS ^

Cornerstone asteoce of Wgh real interest Sebag. a rate of share price appred- through fee Middle East, S

Tho ^ rates, or fee abandonment of Exco has also expanded into ation achieved despite two Europe to America* tSs is what is haoMnmp broki^ I*

mSscS^alJidtoSe torhiS infomation services a one-for-one The fortunes may be (hang- Sinrefee StS%£, . M^r)^ ^to continue for some time

more sceptical au^ence for his mSStiJSk

political message, rf it mat che s ShWWWto aXe-

a. lli .,.rnr n ,.t l . wuivu nave uww iuu lu a an* arc-

and if there is indeed a new . ..

approach it has not apparently l /Djecuves
yet been impressed on such i^e eariy hope feat the
t 35 , An, * > assador stronger UJS. economy could

Why Oppenheimer welcomed the takeover

to fee United Nations.

drive the Russians either to

Nevertheless, there are strong disarmament or f un-
reasons for accepting fee new- economic crisis througi

model President at face value, challeng e of the arms race
Disarmament is only fee latest has been abandoned; both sjs-

of a whole series of issues on terns need relief from fee strain,
which fee President has moved and America’s strategic objec-

away from his electoral rhetoric tives must be approached by
and back towards fee central more subtle and accommo datin g

themes of recent U.S. foreign routes. That is why fee Pres im-
policy. Eariy fears of aggres- dent seems to be presenting an

STveness or isolationism have agenda which dwarfs the dry
proved unfounded; Nato and baffling issue at Versailles.

The Comecon
credit debate

GIVEN THE WIDER strategic extent) politically beneficial,
and foreign policy concerns of And they believe that problems

fee Reagan Administration it of vulnerability to Soviet pres-
was only to be expected that it sure are manageable. The

would, as at Ottawa, seek to put argument, in which fee
East-West economic relations on principal participants are the

A key figure in fee marriage
between Mercantile House
and Oppenheimer is of
Michael Stoddart, an entre-
preneurial character who does
not fit fee popular — and not
always flattering — image of
a UK investment trust
director.

As a director of fee Electra
• House group of Investment
trusts, he has also been on
the board of Oppenh rimer's
securities business since
Electra bought its initial
stake in the group seven
years ago.

Stephen Robert, Oppen-
hdmer’s president and chief
operating officer, says his firm
had been talking for some
time about the growing con-
centration in fee securities
industry. Its managers saw
there could he some value in
getting bigger, but they also
warded to retain a consider-
able say in the way their bu&
ness was run.

“ We started to talk to
Michael,” says Mr Robert,
“and he said *1 have got a
terrific Idea*.” By late
February, Oppenheimer was
In preliminary talks with Mer-
cantile — which also has close
connections with Electra — ■
and fee deal was finally sewn
up last Sunday.

Mercantile Is paying a fancy
price for the U.S. business —
$162L5m compared wife net
worth of around $48m and
after tax profits of $174m In
fee year to last January. But
Oppenheimer Is a very profit-
able business, with a good
reputation on • Wall Street

Founded In 1950, Oppen-
hehner mainly catered for
institutional customers — u\til
May Day in 1975, when fee
abolition of fixed commission
rates changed fee face of fee
U.S. securities industry. The
firm decided to survive
through diversification and to

carve oat a niche for itself in
providing financial services to
veiy wealthy customers. R
now has four branch offices
in major metropolitan areas
outside New York and Mr
Robert cl aims that Its sales-
men on average do three
times the business of their
counterparts on Wall Street,
thanks to the emphasis on
wealthy clients.

Oppenheimer offers a
variety of tax shekels — Its
clients were among the early
hackers of De Lorean on this
basis — as well as other sophis-
ticated services like arbitrage
and options trading, it now
gets about $4 of business from
private clients for every $1
it rakes in from the institu-
tions.

The firm has also developed
a fixed income department,
and in fee past two years has
been pushing into fee mergers
and acquisitions business. It
has 27 research analysts, and

has become a leading special- -
ist in -“leverage buy-outs.”

From a low pioiid of
9422,000 after tax In 1976-77,
profits from the securities
business climbed to $16Jm in
1980-81, before a surge in ex-
penses squeezed net Income
back to $ 12.6m in 1981-82.
Sharholdexs’ funds in -this
side of the group total $4L2m,
and have risen by three-and-a-
half times in fee last four
years.

The rest of the business be-
ing bought by Mercantile
consists of a mutual fund
group— mainly money market
funds — wife $8.5bn of assets,
a pension fund side wife
$3Jbn under management,
and a real estate group which
has put together roughly $lbn
of property deals.

According to Mr Robert,
fee main attraction of a link
wife Mercantile lies in fee
UK group's international con-
nections.

However, he admits there
are some fundamental differ-
ences between fee two com-
panies. Mercantile has grown
up in the wholesale markets
—in its money, broking oper-
ations, for instance— whereas
Oppenheimer retails its ser-
vices to the puMie. While
Mercantile generally acts as
ai agent; fee U-S. firm quite ’
frequently operates as. . a
principal — making markets in
over-the-counter stocks, or
playing the arbitrage game on
its- own account, for ex-
ample. ■ -

This means it is much more
capital Intensive than its new
owner. But Mr Robert in-
sists that it has not gone into
fee deal in order to bolster
Its balance sheet “We have
enough capital to grow fee
business to two or three
times its current size,” he
says.

Oppenhelmer’s partners
will be taking most of their

proceeds in cash, and some of r/;
them — especially fee key a
half-dozen members of Its i<
.executive committee — wffl fj
become very rich men. At <*' .
least, some of their new :
capital will he reinvested in s
fee partnership, which win r-
eqatinne to operate as an
independent entity under a ■■
new nahne.

Inevitably, there Is already
speculation mi Wall Street
that some of fee partners
may be tempted to take their
money and run. But Oppen-
heimer insists that Sts present
team will remain in plaee.
After all, says Mr Robot,
one of fee main reasons for
doing a deal with Mercantile
was that it allowed the busi-
ness to continue under its
existing managers.

Richard Lambert
in New York

fee agenda at Versailles. The Americans, the West Germans
Americans’ specific concern is and the French, reached dead-

wife the amount of credit that lock last December.

the West makes available to the President Reagan's sanctions

Soviet bloc and the terms on against the Soviet Union over

which it does so.

the imposition of martial law

Men & Matters

In theory it ought not to be P 111 .

difficult to establish Western S e ^ e Q !

consensus on two fundamental I Unbeaten gold

propositions here. First. ^ . i » . — .- - - . . . — — — - - — j , — — y .

makes no sense for the West tnat is tojarry natural gas from Golden Fleece indeed. Winning tax "avoision a “modern power- chamber of commerce), Thai- government advertising, 1

to subsidies interest rates on iHwu? 1 W a Sibe ^ a his second Derby in five years form of passive resis ta n c e; land, Singapore and India, k is had to close down its rati

official export credit to the i, £ number means that the pockets of * movement which has no hardly surprising that he should wide news agency.

c?-— ^ C0QHHUU6&. IDCiUulHH JOilD Vpmnnc Pnnlc mfllinvMiwi heroes blit TT1 whfrh fhf» npongpn hio n«>« «rv - . ;

M a ha tma Gandhi is the high 1965 in Malaysia (where he was weekly, which like all Mexican
pri«t of tax dodgeis. He calls president of the international magazines relies heavily on

j, has
ration-

Industrial &

Soviet Union — least of all when S Vernons Pools millionaire ™ ^ch the prepare for his new posting The Mexican Press claims to

the leading industrial countries w?s3^Gmninv S Robert Sangster are given Government is the villa m. ; with a six-week (intensive course be free/ The goveromentbow-

are trying to keep budget another lining of the stuff. j Bawly was m London y ester- m Japanese (“ enough to ex- 8 ’

< . . ■. •_ complete exisunjr contracts tj,® l. Hnv offer & immvhTiin a* ^ ,

&S7.&3B S^d» e SfiS5 rt art ^SaM-SSShhe F jfi «BTi p e a?^er&i^ U ^S

fee West should be prepared to bou S ht for £430,000, ^ book “The Subterranean around) and a thorough brief- the ofneSrorfeL a sSe

OIBCUS5, jluuiului aiiu peruetps nr Uip tPchnnlnEV Wnmn, amll “F L “ 'J huc uountij a

also co-ordinate its lending Sbie fZOm— and there are the drawn what he gingeriy terms political background,

oolicies towards the East in SSSTii bonuses from Epsom of “adequate” reviews In the U.S., But London’s i

OOUCieS to warns me Uiast m The imsoitancn ftf e* mVt- 4n “Y 1 " ux m w.o., London’s School or extra mnnw frer tnein? line

order to ensure feat there are aU this^feti^ £U3J901 and a £3,500 gold where it was brought oat by Oriental and African Studies, ^ J t ^ ^

no forther Polands and “Pi?' McGiaw H1L which provided MdeweU’s The caROomsts broke one of

Rnmanias, no repetition of the hawks ad dwa toffee “There is no room for senti- In economic tenns (in .politics special tuition, is. finding a geunwrittM rules feat: fee

monopoly, and compensating
poorly paid journalists wife

no former roianas ana for compromise birth between
Romamas, no repetition of the hawks and doves in the

There is no room for senti-

the unwritten rules feat : fee

debacle in which the Soviet bloc American admtosteiti^ and meot about Worses,” Sangster he’s a liberal) he is considerably growing demand from business Rrosjdaat matt not be ridlculea.

was allowed to accumulate betwwn says. “ Tins fis a business run to fee right of Professor Milton for similar courses. Lopez Portillo’s Press secretary,

SSObn of debt which ft is now and fee W^tem ^ ^ Friedman, arguing feat in demo- Lo^ hm ^ np m «, e .Francisco Galindo Ocfcpa, told

unable to service. Earlier this rear a eroun of v ^ 1 ? ers m cratic countries only the ridi TPoreimi Office’smertfie in government agencies not to

toad^ US (rffidrislJdb? Jfr tenth of the population should £J2& « SUhiPffShS *d*ertise in “Proceso” and

Percentionx JamS Buckley somSed M % a 10 S 7 Govcnmieirts mura j ? "JfUSS 1 !." “I?

Perceptions Europeans on the issue of feould a^me responsibility fm: regular courses for business- ^ repor ters have

Yet the seven summit coun- credit subsidies and the need the Poorest tenth,

trine Ha tint gnnnar tn h»vn hnm tn-r rmato, several hundred horses— even As an accounts!

Professional servicesinctide-
• Nfeluatfons •Management

tries do not appear to have been for greater co-ordination on kT icrw»*~ accountant ™ advises Japan

? bte tojlgreem advance «n_a' credit. .The mteion was SLta-^vS i morcto S ^

regular cnunsoR tor hiuiinacK. rmew reporters nave

.AS an accountant who advises Ja^e. ft S* aS tiS the president’s trips,

lenta nn tav stmiHanro Vio ..a . , «* tt

•Rating
•Building
•Rent Reviews

Investment
Agency and
Development

more - esoteric

Proceso ” appeared

form of words in the com- inspired by fee Atlantidsts in SoJlT ST hta fSS^. t0 - * U(am P demands— from Blue Ckcle for week wife its first editorial oh

m unique to cover this aspect of fee administration. And while rr!S-r*i_r^r s ^^, Zzi._r s T: touow “ of the subterranean courses in Bahaaa Indonesia, fee government’s move. The

uiuunjuc iu uura mu aspect ui LUJC aunmua uauuu. AQO wnne 1- — — . — courses in £

East-West economic relations, fee initial European response {2JJ ^ J! economy and tactfully refrains for example,

The explanation lies mainly in to its chief proposal-feat hv an S' 001 supportmg Xt OT attacking SO AS chari

different nerceotions and differ- credit should i? °P efl chequebook. lt & -aSSr a

administration. And while

different perceptions and differ- credit should henceforth be put GoldeiT Fleece now looks a
mg national interests. on fee strategic agenda-^was v,2Srl ^ J

. .. . .... .wl bargain buy— and next, year so

entered accountancy,

courses in Bahasa Indonesia, fe e government’s move. The
for example, magazine said feat it would

SO AS charge fees of around continue its critical policy' and,
£300 a week for fee tuition, would not be deterred by the

. . .. — ■ oargain our— asa next year so -urhinh v. . « . .. t- * .. VI & have not gone out offering advertising ban.

What on fee surface appears 3“? S 5-°Y ^ I may fee SlReef colt which liji” iJloR or ? iese faciLitie6 to buriuess, it Naranjo appeared wife a

to be a strai^tforward argu- bcgmmngs of a useful dialogue. ssSgster bought, at Newmarket *** CMne t0 „ us '” says cartoon in thetorm' of Tflor^

ment about credit is in reality 111 journaiisin curing which he organiser Graham Thomas.

ment asbout credit is in reality
a fundamental debate on concessions
Western objectives in East-West European re

European readiness to make

economic relations. At one end concessions, however, has been I to stay at fee top of the v;-

nf tfia endAtmm thnoa in t» L. .. I . v 1.

^2,^ f0P OT !X r are“be“ WHS* 1 ®- 1 * 0 **

But if feat is what it takes if 1 * Manchester Business

.. — -- w «s. Miner— my censor — School about a ooflaborative -

axd that the West^ould now deirt, whose Republican party a bus m Epsom’s thunderstorm • and Scandm '

frame an economic oolfcv mu, r»... e. n «*. ^ . . avia -

^ rar0 5,_ economic _ policy now coofronts electoral prob- or comfortaWv ensconced in

le ^ s Ti _“‘ fbe gram-producing front of a television screen at Z ~ a

military build-up. All balance 9 V1JMI7 UlwiMn L. - - - I P^'lY . 1

Guidelines on good beteviour

— ■ I,, mm — - ■ would seem to be a growth sec-

• M ■ j. tor— the Germans on “ how to "

Adverse action when abroad, fee Brits on

uwsvvwi - not to” when in Spain

Cap and nw fee

Fmratha miller'' imrest- ' B l£SarSMi"5S

m

X ."SSSL'S SS . TtolyKtttaBpBfcMyb. wortoi” senior dStes at ooas in Engtoh. «

t SS? iffeTTtaSr S Vereaffles brokers Wood Mackenzie. They Dr Stanley Ridgwell, struggling in vatoto get out

hese are from fee Prime’
ter to his Ministers and
leaders.

Out go dealings in public^y-

■hiniam in tho Thirrf WnrJH — JT . »w«aiw diwci? «woa mau«enzie. JLUey yuuuvy nxtgweu, SLrugsuug « ram CO get Out .. _r~T

su .? m ? t te fee partwapants shared £15JHJ0 and offered a who leaves London for Tokyo of a net, and the other De la toted companies, fee leaders of

For their part, the Europeans run fee new strain of pragmat-

nessmen are now setting out problems (corruption, hyper- ~r ror nouse building
adequately equipped in fee inflation, a massive foreign ami 85 f or *“8”t dubs even just

I - . j. * m ~ — — — — - — - f- - uuwuunwif ill mr lUliaUVlL d mj+ftSiy H flfl yi n j i ^ w — — » vm j uul

j laimdiced view of rem in U.S. foreign policy may FVvItfv thniiohfc lai^iiage and customs of fee debt) have led to the govern- dinaer or a stage show should

to believe yet enable fee West to re«* inOUgntS people wife whom -they will be ment withdrawing «n S/Sm! be abided. Tough.

t0 S? lfi ? c 781 enabi€ ^e Wes t to resfe T V T 5J u " u »ni5 people wife whom they will be ment withdrawing all its adver- •*» avoided. Tough.
85JTSL r S? 0 iTS ** cocs ? ns ® on a •»- To Him- to Dan Bawly, an deSing. . tiring SSethe SS

?? ba J aMe ’ 2°®^ JPPnwi towards fee Israeli author tamed acconn- Ridgwefl is perhaps a speraal “Proceso.” nt D .

economically and (to a lesser Soviet bloc. tant, you would think feat case. Having served KJstoee As a result the liberal UOSi

Observer

Chartered Surveyors
ISnow HHI, London £C1A 2Dt -

Tel: 01-236 3000. Teitoc: 885485
r Birmingham Edinburgh . Leads Manchester Brussels

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. 'Financial Times Thursday June 3 1982

ECONOMIC VIEWPOINT

Stabilising the world’s money

®er,

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2 a:im ,? e J ^1

" GROUP «f thirty calls for in-
tervention in currency markets:
TT.S.. urged to stabilise doHar,”
reported the Financial Times on
May 7, 1982. Recent large fluc-
tuations in exchange rates seem
even more disturbing than
when floating began in 1973-74.
. The U.S. dollar remains the
storm centre. Figure 1 * com-
pares the large fluctuations in
the -doUar/Hark exchange rate
to the relatively mild move-
ments in Germany’s “ effec-
tive ” exchange . rate— whose
trade weights are dominated by
her European partners. Dae to
agreat surge in the inter-
aatkmal demand for dollars be-
ginning in the summer of 1980,
the dollar has appreciated by
more Khan 25 per cent against
the. Mark and has shown sur-
prising strength against the

Japanese yen. This sudden loss

of international competitiveness
unnecessarily intensified the
present recession in the United
States.

. .Says the Group of Thirty’s
recent report: “ A high ex-
change rate can promote de-
industrialisation, undermine
credit-worthiness, and impart a
deflationary bias to national
policies. A low exchange ' rate
involves welfare losses and ren-
ders the economy more vulner-
able to inflationary Impulses.**
That may be, but the Group’s
emphasis on increased official
intervention to smooth ex-
change rates is misplaced." In
particular, the . Group is wrong
to call on the Reagan Govern-
ment to reverse its commitment
to non-intervention.

First, the world is still on a
dollar standard. The dollar re-
mains the principal interven-
tion currency by widch other
governments stabilise their ex-
change rates as long as the TJ.S.
stays out' of the market -
Secondly, the important
objective of . smoothing
exchange-rate fluctuations
among the mark, yen and dollar
is best approached indirectly.
Germany, Japan 1 and the U.S.
should begin by properly
aligning their domestic mone-
tary policies to stabilise highly
erratic growth of their. joint,
money supply "-s- and . then
exchange-rate fluctuations : wiH
naturally diminish. The two -
worldwide inflations of the
1970s, and the great deflation
of 1981-82, can be systematic-
ally explained by simp prior
increases or decreases in .the
collective money sapply of the
industrial -countries. But these
fluctuations in . “ world " money ■

By Professor Ronald I. McKinnon

were themselves due to heavy
foreign exchange intervention
by central banks other, than .
that of the U.S. Hence, more
official -exchange intervention,
before international monetary
harmonisation is assured, could
be a serious mistake.

In formulating their mone-
tary policies, the Bundesbank
and (he Bank of Japan often
give some weight to foreign-
exchange considerations —
albeit on an inadequate and ad
hoc basis. Since 1945, however,
the American Federal Reserve
System has generally foDOwed
an isolationist monetary policy
—whether based on domestic
interest rate or domestic money
growth targets. While now
dangerously obsolete because
of the increasing instability of
the International demand for
dollars, this philosophy of
national monetary autonomy
still usually receives uncritical
support from American econo-
mists. .

But what more international
definition of money is now the
relevant indicator?

Figure 2 compares animal
growth rates in narrow Ml of
the three principal; and increas-
ingly substitutable, reserve
currencies: the dollar, yen and
mark. Rates of growth in U.S.
MI measured annually or even
quarterly are remarkably stable
In comparison to growth in
Japanese or German Ml.

What modest changes there
have bees" cannot possibly
explain the great American and
worldwide price inflation of
197980 followed "by - sharp

deflation in 1981-82. Fortunately,
a more satisfactory explanation
suggests itself by considering
the much greater monetary
fluctuations in other industrial
countries. For brevity. Figure 2
is confined to illustrating . the
sharp changes in monetary
growth rates of Germany and
Japan. Japan’s animal growth
in Ml varies from more than
30 per cent to 0, and Germany's
from 14 per cent to —3 per cent
between 1971 and 1981. In this
respect, most smaller industrial
countries with hard currencies
are more similar to Germany
and Japan than to the UB.

Define the “world" money
supply MlfW) to be the
weighted sum of dollars
[MltfLS.)]. D-Marks [M1(G)],
and yen [M1(J)].

Ml (W) .45, Ml (U.S.)

.35, Ml (G) + .20, Ml (J).

The substantial weight of .35
assigned to Germany reflects its
disproportionate importance in
the European Monetary System
— but the precise weights
chosen, and whether or not
other hard currencies are
included in the definition at
MlfW), are not critical.

Over the past 12 years,
changes in M1(W) predict quite
weH fluctuations in world
(nominal) OTP and - in the
world mice level, after a lag of
one to two yean. Statistically,
it makes little difference if the
“world” Is just the totality of
our -three reserve-currency
countries or if it encompasses
the OECD economies as a group.

Since 1970, however, M1(W)
predicts inflation and deflation
in the U«S. itself somewhat

better than does MlfU.S.)j For
example, Figure 2 shows the
very sharp slowdown In German
and Japanese money growth
over 197980, with German
money growth actually becoming
negative in 198L This unusually
sharp decline in world money
growth accurately predicted the
1981-82 worldwide deflation in
general, and that occurring in
tbe UK. in particular. Since
1970, the Federal Reserve
System has been following an
increasingly ineffi cient monetary
indicator.

In concert with the Bundes-
bank and the Bank of Japan,
the [joint target should be
smooth growth (within a narrow
range) in an indicator variable
like Ml (W)— -leaving Ml (U.S.)
somewhat freer to ebb and flow
with international demand. If
the three 'competing reserve
currencies are substitutable in
international and national port-
folios, then -the demand for
M1(W) will be more stable than
the individual national demands
for Ml (U.S.), M1(G) or M1(J).
Therefore, in an integrated
world economy, MlfW) is a
more efficient control variable
for ironing out cyclical inflation
or deflation within individual
countries.

Would it suffice for tbe
Bundesbank and Bank of Japan
independently to smooth the
hitherto erratic fluctuations in
each of their domestic aumey
supplies?

Unfortunately, no. Consider
the plight of the Bundesbank
and Bank of Japan in June 1982.
Both have depressed domestic
economies and domestic money

Brant Bedovic

growth below desirable long-
term trends. But the authorities
in both countries know that any
substantial domestic monetary
expansion will (mediately spill
into the foreign exchange
markets and depreciate their
undervalued currencies even
more.

■The preferred procedure is to
calculate the sum of Ml for the
U.S., Germany and Japan on a
monthly basis and to instruct
tiie three participating central
banks to aim for annual growth
in this sum, MlfW), of, say
6 per cent For example, a
target range for growth in
MlfW) of 5 to 7 per cent for
the following year could be
jointly announced, at the same
time individual official targets
for Ml (UK.), M1(J) and M1(G)
were discarded. I chose 6 per
cent to approximate expected
real GNP growth in the
triumvirate — taking into account
that Japan with Its high savings
rate may reasonably be expected
to grow faster than Germany or
the U.S.

Technically, smoothing aggre-
gate money growth for the
group would be much simpler
than achieving national money
growth targets for the three
countries separately. The
reasoning is straightforward:
the ebb and flow of international
monetary demand among the
three currencies implies that if
any one of them (say, the U«S.)
succeeds in hitting its separately
specified target, the other two
are unlikely to do so — see
Figure 2. And, in an intergrate d
world, it is the group’s collective
money supply that determines

aggregate demand for goods and
services.

Under this new international
standard, each of the three
central banks* domestic money
market transactions would
r emain practically unchanged.
That is, the Fed would continue
to buy Treasury hills and bonds
equivalent to keeping Ml (U.S.)
growing at a hypothetical 5 per
cent rate, the Bank of Japan
would buy Japanese Treasury
bonds (or rediscount private
loans) so that the M1(J) would
hypothetically grow at 9 per
cent, whereas the Bundesbank
chooses a growth rate closer to
tbeUiS. level.

The big departure from
present practice would be in the
Fed's reactions to foreign
exchange interventions in
dollars by the other two central
banks. If, say, the Bank of

Japan is buying dollars — as it
did massively in 1978 to prevent
the dollar from depreciating
even faster — the resulting sales
of yen would expand the
Japanese monetary base above
its trend. Under the new
regime, however, the Fed would
allow these official Japanese
purchases of dollars to contract
the American monetary base
below its trend so as to leave
their joist money supply
unchanged.

How would the new money
standard work if im posed in the
sharp deflation of June 1982,
when growth in the joint money
supply is still far below its
desirable trend? An Inter-
national monetary board could
quickly calculate that the
German and Japanese Mis were
below their trends and that both
currencies were undervalued.
Although the American money
supply was dose to its trend,
tiie Fed would begin expanding
the UK. money base, nudging
Ihe dollar down in the foreign
exchange markets and reducing
short-term UK. interest rates.
This would allow the other two
central banks to expand their
monetary bases,

Once the aggregate money
supply of Ihe group was growing
at its preassigned level, say 6
per cent, the Fed would desist
from any further expansion. To
stabilise expectations regarding
future inflation, tins eventual
termination of the extraordinary
American expansion would be
well advertised.

Ronald McKinnon la Professor of
International Economics at Stanford
University. CelHomie. and author of
Money in International Exchange— the
convertible curre ncy tystem, Oxford
University Press. 1979.

Lombard

Argentina and
its generals

By Hugh O’Shaughnessy in Buenos Aires

IF THERE is one thing that
would be worse for Argentina
than losing the FaiMands war
it is Winning it Or to put it
more positively, winning the
war would be a disaster, losing
It, as appears moire and more
likely, could bring the country
immense benefits.

For t he Galtieri junta to have
pulled off its invasion of the
FalkUmds unmolested ’ would
have condemned the long-
suffering Argentine people to
an even more severe dose of

empty militarism than they

have been putting np with for
these past 50 years and more.

way in the mid-296Qs, but he
was thrown out in 1969 by a
military regime whkh was
nearly as incompetent as it was
ambitious. Buenos Aires has
lurched from one set of crises,
caused in part by military gov-
ernments in office, to another
set of crises caused in great
measure by military scheming
behind civilian presidents’
backs.

Myth

Credit

Bad he won General Galtieri
would have claimed.— indeed for
the moment does riainx —
immense credit for having
“ recovered ” by force of Argen-
tine arms pieces of land which
aH Argentines have been taught
from, their earliest days to think
of as Argentine. The fact that
several thousand troops were
sent to take over a virtually
undefended territory would not
have prevented the military
from claiming it as a famous
victory. Had this been the case,
they would have claimed a
larger say than they have at
preseat in the most detailed
affairs of state whether these
concern the exchange rate, the
price. of yoghurt. or- the French
literature syllabus in secondary
schools. . -

From 1930 Argentina- has been
controlled overtly and covertly
by military men, conventional
or heterodox. Conservative gen-
erals have played turn and turn
about with General Peron or his
surrogates in the. Pink House
in Buenos Aires.

Rare have been the occasions
when decent parliamentary reg-
imes have been able to get
ahead with the job of exploiting
Argentina’s immense resources
for the good of the country as
a whole. President Arturo Ulia,
the representative of the
middle-of-the-road Radical Party
made a brave and largely suc-
cessful attempt to govern this

There can be little doubt that
the April invasion of the Falk-
lands was timed to distract
opinion away from economic
chaos wreaked by successive
military and Peronist govern-
ments. It was also aimed at
seeking a sense of unification
of the nation as a whole, com-
mitted as it was to the justice
of Argentina’s cause in the
Falkland^ behind a successful
military adventure.

For this to have succeeded
would have meant the perpetu-
ation of the myth that the
military haH some God-given
aptitude for politics and should
go on enjoying a right of veto
on any national development
they did not like.

The possibility of defeat of
Argentine arms in the Falk-
land^ and the post mortem
about a bloody and costly
failure opens up possibilities for
questioning old myths and
thinking again whether the gen-
erals should have automatic
rights to determine every major
decision of government.

Rethink

For decades Argentines, never
very sure of their own national
identity, have Clung to the idea
that the military is a great
unifying force in national life.
It has not been. Argentines
may now have tbe opportunity
to rethink some of Ihe central
suppositions of their national
consciousness. They may well
find that they do not need the
mental crutch of militarism any
longer. This rethink may be
a painful process but it could
be a rewarding, liberating and
infinitely constructive one.

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i.'eTSSEi ,

Letters to the Editor

The FaBdands: the Foreign Office and the voters

From Mir D. Gunn
Sir, ■ — Your TV critic' (May
26) highlights an attitude ex-
pressed increasingly by the
media throughout the Falklands
war and which, if taken apart,
can be roughly expressed as
“Never mind winning the war:
just make sure we have enough
■material, test, to fill our
columns and TV screens.”

-■ Of course the public wants to
know what is going on, and that
includes the world public as
welL We should all remember,
however, that one of the aspects
of independent media is that
their job, as they frequently
remind us, is the independent
dissemina tion of news . and com-
ment. The Ministry of De-
fence’s job, in contrast, is to
win (he war: and the public
must understand .that the dis-
semination of all news imme-
diately plus co mm ent on likely
future moves by recently rc-
tired senior officers of consider-
able ability and knowledge will,
inevitably, hazard our soldiers,
sailors and airmen. I believe
it" has done so already and in-
deed one of the Sunday national
papers commented .as such.

The speed and defiiands of
modem media dp call for very
careful handling and maybe the
Navy, of Whom Mr Dunkley is
so critical, needs to study 'the
matter more. As he points out,
however, the UJ5. lost the Viet-
nam war on TV and as far as
I know we have no intention
of l osing - this one. Truth is; of
course, a prerequisite, but I
must profoundly disagree With
tfr ' ‘Dunkley’ s . conclusion that
u truth on screen in every front
room fast is the best policy.”

I 'have sometimes felt in the
past month that Argentina must
have been virtually able to

close down whatever intelli-
gence services it has: all it bad
to do was get its agents here
to buy' the British papers and
watch our TV.

David Gunn.

Broom Farm; Privett, Alton,
Hampshire. .

From Mr P. Tyltsr
" Sir,— Malcolm Rutherford
(May 29) rightly draws atten-
tion to the remarkable level, of
abstention in the Beaconsfidd
By-election, but I suspect he
did not himself observe the
campaign at dose range since
he fails to identify the cause.

Given the extent to which the
Conservative Party and its cam-
paign directors attempted to
nan the election into a popu-
larity pdtt for its Falkland
jingoism — inchiding a paraonal
plea from No. 10 to each indivi-
duaj voter — the fact that less
than a third of those entitled
to vote supported therirmust be
significant. ' Scarcely a “ vote
of confidence.” -
After weds of meeting
thousands of electo rs in this
constituency iny interpretation
of this extraordinary resuit in
this e x traordinary political situ-
ation is that ...a ' considerable
body of former Conservative
voters did not feel they could
weaken the Government at a
time of international crisis' by
voting against it;- on the . other
hand, they could see no positive
reason for voting for it Thus,
a similar proportion to - tbe
deserters of Croydon, Crosby
and Billhead stayed at home.

As Sir Rutherford suggests, the
situation remains fluid. "When
we revert to “ normal” politics

—hopefully, soon and with the
minimum loss of Hfe-the
potential aipport for the Alli-
ance is unchanged.

PanlTyier.

(LrberaS/SDP Alliance
candidate)

32, Station Food,

Beaconsfield, Bucks.

From Mr P. Wood

Sir, — Beading Malcolm
Rutherford’s article (May 29) on
the so-called “attack” on the
Foreign Office, it is difficult to
see how a successful assertion
of British interests overseas can
co-exist with the hostility to
foreigners Mr Rutherford claims
to find in the populist ranks of
the Tory Party. Mr Rutherford
may be drawing our attention
to wbat he privately regards as
the absurdity of Ibis sort of
Conservatism, or it may be that
his analysis is, after all, too
sharply drawn.

However that may be, I sus-
pect that the post-war history
of the -Foreign Office has done
little to advance its best causes
and that the recent call by Sir
Peter Smlfbers for a reexamina-
tion of recruitment and training
policy in the FO will find a
response across a far-wider
spectrum of public opinion than
that represented '.by the Daily
Mall and Express in full cry.
The elitism many people discern
within the Foreign Office is
arguably (given both the history
and the more recent pre-Falk-
lands events) that of superior
people ., who arp not hi fact
superior. .We deserve a better
strain. "

Peter Wood,

Newbold. Farm, ^
DunUsboume Abbotts,
Cirencester, Gins.

The Yalae of
research

From the Director, ■■
Association- of ihe Brtt/isn

Phamaceuticai fttiusfir y.

Sir,— Mr'Warburton "(May 27>
reveals a woeful ignorance of
the economics of the pharma:
ceutical industry and a regret-
table disregard for the interests
of his many members employed
in the industry. • ....

. The £S00m a .year currently
spent on research in the UK
does not “go on tmkenng with
existing drugs " & alleges:.
It is spent on" searching for
totally new effective drugs and
in establishing tlheir safety.
British pharmaceutical research
has had an Impressive record
over many

new products and jte success has

dearly justiflfidftio^S UK

investment by bo® British and

.foreign^-owned" companies in
both research and production
.facilities. . •

. Imposed generic dispensing
either by obliging the doctor to
prescribe generic drugs or per-
mitting the pharmicist to substi-
tute a generic product against
a script for a branded product
; would be a major disincentive to
research investment, would in-
crease th* importation of medi-
cines (mainly from Eastern
Europe) and would .result in. a
significant loss' of jobs. Fur-
thermore, it would drastically
reduce the" positive -balance of
payments for medicines cur-
rently* in- excess of £550m per
annum. Any supposed savings
to the NHS wouML be small in
comparison /with consequent
economic losses to .the country.

To correct another of the
many inaccuracies in Mir War-
burton’s letter it should be said

that the pharmaceutical indus-
try is not seeking to extend the
patent term but to restore the
effective patent life. As it now
usually - takes more than 10
years , to establish the efficacy
and safety iff a new medicine
prior to the grant of a product
licence, less than half of the
full patent term remains at the
time of introduction to the mar-
ket Because of this the phar-
maceutical sector working party
of NEDO, comprising repre-
sentatives of management,
trades unions and the DESS, has
recently issued a consultative
document proposing infer alia,
a restoration of effective, patent
term pharmaceuticals.

Does Mr Warburton really
want to undermine one of the
most productive and innovative
high technology industries
■which this country possesses?
(Dr) R. B. Aradd. : .

12, WhltehaUf SWt .

Workable long-term
standard

From Mr R. Ancastle

Sir, — In reject of inflation
accounting Lex (May 27) says:
“The job of the accountancy
profession is to . . . come up
with the fairest and most work-
able long-term standard." But
that is precisely Wbat the pro-
fession did nearly 10 yeaxe ago
with exp osure draft 8 (which
proposed CFP). The only tiring
“wrong” with ED 8 was that
politicians didn’t like it

Let nobody forget ifaaf ihe
Morpeth working party (■which
produced ED18, ultimately lead-
ing to SSAP 18) was not trying
to produce a standard baaed on
toe best method of inflation
accounting. Instead Morpeth
was instructed by the Govern-
ment to base the new standard
on the 1975 San attends recom-
mendations for GCA. TSial was
hardly a very satisfactory pro-
cedure for an “Independent"
profession.

Lex mentions company chair-
men whose motto is “a potmd
is a pound.” But surely this was
tbe Sandoionds motto? Even the
supporters of SSAP 16 recog-
nise that 10-year CCA summariek
are nonsense- And SSAP 16
results in CCA balance sheets
based on " end-of-year ■ walues
while CCA profit and loss
accounts are based on “average-
for-toe-year” values. Ttris is
ludicrous unless one assumes— -
wrongly — that toe two are
compatible.

Incidentally, is toe Mr David
Oonme who has apparently
been advocating CCA recently
as vice-president of toe English
Institute any retetiou of toe Mr
David Connie who was chair-
man of the Institute’s Technical
Committee at the time Of toe
July 1977 meeting which voted
against any compulsory system
of CCA? At that meeting tods
other Mr Connie said: ”...
there is agreement on the need
for account to be taken of the
effect of inflation. The Council
agrees with those who say CCA
itself is not a system of account-
ing for inflation, and I have said
so repeatedly.” .

Roderic Ancastte.

Parkside,

Henley-on-Thames,

Oxfordshire.

Hallmark' of a
moral society

From Mr KL 'Daly.

Sir,— Yoar report: (May 27)
on toe Health Service dispute
quotes Lea Murray as faying
“tbe ban m ark of a ‘ moral
society 1 was when toe atzoog
aid for toe weak.”

I wonder 1£ Mr Murray could
tell us if this means aMe-bodted
porters tunning ock people away
from baepotals?

Ken Daly-

40, Doughty Street, WCL

01-248 9166.

ONE SETOFFIGURES
EVERY PENSION FUND
SHOULD KNOWABOUT

Ifs the telephone number ofBarclays Investment Management
limited, avdiolly-owned subsidiary of BardaysBank Trust Company.

We specialise in providing full investment management services
to institutional and corporate clients and^ we are one ofthe leading
investment houses inBritaia Funds under management exoeed .£2,000

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As you would expect from the size of these figures and from
our Barclays Group pedigree, Barclays Investment Management
Limited possesses the skms and resources needed to manage your
company's pension fimd-and to do it very well- whether yours is still
amadium-sizedcompany or amuM-national corporation.

If you would like to know more, the man to talk to is
Bill Hilling, Director and Investment Manager; Barclays Investment
Manage ment Lbutedjuxon House, 93 StPaoTs Churchyard, .
London EC4M 8EH.

Ask him about the kind of performance his fond managers have
achieved over the past five years, the quality.aqd exlmt ofthe service
pension fund dients can expect to receive and the comprehensive
administrative back-up that canbe indudedin toe package if required.

We think you’ll be impressed with his answers.

BARCLAYS

24

Conpanfes and Markets

Fmancial .Times Thursday 3\me 3 1982

UK COMPANY NEWS

Allicd-Lyons
up to £141m

De La Rue plunges £llm but lifts payout

SECOND-HALF taxable profits of
Allied-Lyons rose from £61.9m
last time to £75.7m. This meant
the total figure for the 52 weeks
ended March 6 1982 reached
£141 .2m, compared with £l 12.4m
for the previous 53 weeks
period. At the interim stage,
the directors - forecast that
results for the year should be
good.

Margins on trading Improved

BOARD MEETINGS

The following compwvtoa have notified
dries of board mdfttirtda 8> the Stock
Exchange. Sudr meetings ere usuatty,
held for die purpose of considering
dividends. Official wkHowUmm are not
avafleble u to whether dividends Bra
interims or finals and the eubdmsicna
shown brikxw are based mainly, on last
year’s timsuMo.

TODAY

interims: Ctyde Blowers. GrewifraWd

TAXABLE PROFITS Of security
printer Be La Bne slumped from
£33m to £21.94m for the year
ending March 31 1982 following
a poor performance by the Cros-
field Electronics division and
the banknote printing business.

Sir Arthur Norman, the chair-
man, describes the results as
“ considerably worse" than had
been expected as late as last
December. However, be says
trading in the second six months
showed a small Improvement on
the first half even though it was
decided to make some very sub-
stantial provisions against the

up the final dividend from 14.4p
to 15.48p, which raises the net
total by LOSp to 22.08p per 25p
share.

Stated earnings per share
were well down at 3S.3p t?7.4p)
before extraordinary debits and
on a nil distribution basis .were
51 ip (77.4p).

Group sales for the year
advanced by 15.4 per cent to
£203m (£L76m) and exports
(Including sales to overseas
subsidiaries) increased from
ELlQm to. £16m. Trading profits
dropped from £22.04m to
£13.39m.

The pre-tax figure included net

over the year ^ from 6.1 per cent <md w*fch, J. Smart possible tapa<* on the banknote of £l.Mm

to 6.5 per cent producing trading
profits some 12 per cent higher
at £154.Sm (£138.3m) on turn-
over up by 6 per cent from
£2.27bn to £2.4bn.

The final dividend Is being
raised from 3 p to 3Bp net for
a total payment of 5.5p per 25p
share, against 5p previously.
Stated earnings per share were
14. Ip (122p) before extra-
ordinary items and 12.9p (S.2p)
after.

Against the background of a
very depressed market Che beer
division did well, the directors
state, with profits up from
£55.4zn to £57.8m, on turnover
of £343. 4m (£790. 2m). AnseLis
continued to make progress
towards recovering its market
share in the Midlands and else-
where within <the division most
areas recorded sales perform-
ances better than the market
Continued progres was made in
turning round Skol NV. in
the Netherlands.

The wines, spirits and soft
drinks side performed very well
with a record profit of £61.Sm
f£50.7m) some 21 per cent
better than the previous peak.
This improvement was con-
tributed by nearly all the
companies in the division.

The food division increased its

(■Ccturactors).

Finals: Awflow Streamlines. Baedum,
Casting*, Century OUs, Bectroitie flen-
rals, Moumview Estates, Property end
Reversionary hrwstmmtg, Rowtinoon
Securities. Tanks ConaoHdatad Invest,
manta, UBM.

FUTURE DATES
Interim*—*

Arcfwmsdw Investment — - Junv 8

Bureo Dean ...... June tl

Csntfonl Engineering June 9

Fenner (J. H.) —j June 14

SkHaw .... June 10

Sonic Sound June 10

Fhwto—

Browntep * * M June 9

Buimer (W. P.) -... July 14

Blmrick -Hopper June 10

rt.ll Samuel ... June 10

Lctgti In to rests June 10

Peeler- HetteiStey ... June 9

profits from £29.3ra to £33m on
sales of £802.1m (£76&Sm>

despite a reduced contribution
of £2 .2m (£4 8m) from property!
disposals.

The deficit from parent and
investment holding companies
was reduced from £23m to
£11.4m. These figures were
helped • by - reduced finance
charges, a substantial increase
in the contribution from the
Australian associate, Castlemaine
Tooheys, and in the suipius .on
disposal of investments.

See Lex

printing business of political
upheaval and economic difficul-
ties in certain client countries.

He explains that these deci-
sions were taken in order ttf deal
with an unprecedented situation
and to create a more certain and
sounder basis for the short and
medium term operation of an
Important part of the group's
business.

The 1982/83 year is expected
to be “substantially better” than
the year under review, although
the residual effects of a poor
performance by Crosfield Elec-
tronics and the banknote print-
ing business will persist during
the first six months which is
likely to cause the results for
the two halves of the year to be
more unequal than is usual.

hi demonstrating their confid-
ence the directors are stepping

(£2. 75m.) and a share of associate
profits which fell back from
£3j22m to £6.61 gl - —

The tax charge jumped by
£4.43m to £7 11m following a
writeoff of ACT amonzdizig to
£6.1m, Manoritira accounted for
£L38m (£838,000) leaving the
attributable balance at £33.45m
(£29 .49m.) before extraordinary
debits of £806,000 (£I.68m).

A divisional breakdown turn-
over aid trading profits of _ toe
group’s two operating activities
sbaiws: security printing, trans-
port ami ancillary services
£160. 6m (£139. 9m) and £fSm
(£2L3m); and Crosfield Elec-
tronics £42.9m (£36. 4m) and

£4 .8m loss (£0J5m profit).

Profit margins bas ed o n the
trading caxrp&us decreased as a
percentage of sales from 123
per cent to 6.6 per cent.

Director Dr Brian Malpass
declined to give details of the
£9m problem to the bank-note
printing business. “We never talk
about , our bank-note customers,"
he said, ad ding that the compan y
had suffered severe disruption at
its factories In the last quarter.
No great change seems likely in
the first half of the eurrent year,
but the Impe ls that the second
half will see “a more normal
pattern ” in the bank-note
bnsiness-

The directors comment that
their expectations for the year
were severely reduced by the
poor performance of Crosfield
Electronics in the Six months to
September 30, as repotted at the
haff-yemv-group . pretax profits
then were ElO.Slm (£1446m).

They add that atthungih the
division has Shown a substantial
improvement (4t is now baric in
profit) it has not been on a scale
sufficient to restore anything like

the level of profitability winch
was looked for at the beginning
of the year.

Almost every other sector of
the group performed wett in the
second half of t he year. The
security printing businesses in
the TJ1C, Colombia and Brazil pro-
duced record results; Security
Express surmounted the prob-
lems caused by the recession in
the UK very creditably; De 1a
Rue Systems achieved a major
turnaround and is now trading
profitably; end the contribution
from associated companies was

satisfactory.

The problem encountered by
the Thomas De La Rue currency
division and the financial
measures taken to deal with them
had a severely adverse effect on
its profitability for the year
under review. There was con-
siderable disruption of produc-
tion schedules during the last
quarter, resulting, in. heavy costs
arising from short-time working
and a redundancy programme in
the Dublin factory to achieve a
necessary reduction in capacity.

The Thomas De La Rue
Security Systems print division
had a very satisfactory year, due
largely to good results from pass-
ports and from the London and
overseas bond markets.

De La. Sue Smurf! had a
successful year.

A recovery to former levels
of profitability and beyond is
confidently expected in the
medium term by the Thomas De
La Rue general services sector,
particularly in areas where new
product^ are being brought into
the porifoHo.

Thomas De La Rue de Colombia
SA recorded a new high level of
profitability and Thomas De La
Rue SA (Brazil) returned record
profits in spite of the very diffi-
cult economic conditions in
Brazil throughout the year.

Having' incurred substantial
losses in the previous two years,
the De La Rue systems division
moved Into profit in the past year
and faces the future with. “much

greater confidence.”

The Security Express division
performed satisfactory. Competi-
tion was' intensified, with a
number of new entrants in the
rapid delivery (Courier) field.

The performance of the Cros-
field Electronics sector in the
first half “bordered upon the
.disastrous " as a result of lack
of sales in sufficient volume to
sustain the heavy . . cost of
development and ox promotion
of toe new range of magnaseaxr
colour scanners. The problems
of transition from one product
range to another in the factories
also played a significant part. As
part of an intensive cost reduc-
tion programme some ten per
cent of CEL employees were
made redundant

The new inagrascan machines .
introduced in the first half of

Coalite
advances
by £2m

PROFIT before tax at Coalite
Group rose from £2L86m to
£23.86m in the year to end
March 1982, on turnover up
from £358.1m to £406B7m. Half,
way profit was £7-2m, against
£7.35m,

A final dividend of 3.1p net
per share <2.Sp) raises the total
to 4£3p' (£l6p): ; Banting*. per
25p share are given as ISJfcp,
down from 24.01P- -
The pre-tax figure was struck
after adding interest .of fiLSlm
(£538,000) •

Tax took £S.21ia,--. against
£2. 19 m. The directors pomt out
that the- latter- figure .was, un-
usually low because - of : the'
release of stock relief under the

g*s sks ars P re ^ —

CEL share has recovered a lot

of lost ground in the last few
months.

The group has reached agree-
ment to set up a plant in Hong
Kong to print the bank notes of
Hong Kong. The cost of the
venture will be borne by the
group and production will begin
in 1984. A similar venture has
been agreed in Singapore with
production planned for 1984.

At year-end shareholders'
funds totalled £135 .91m
(£124J37m)

See Lex

Edinburgh General Ins.
omits forecast final

Caravans Inti. £1.79m in red

DIVIDENDS ANNOUNCED

Date

Corre-

Total

Total

Current

of

spending for

last

payment payment

div.

year

jtear

Allied-Lyons

3.5

Aug 2

3

5.5

5

Barlows

€

July 6

4

6 -

4

Buffo Isfontein

. 2805

Aug 6

400

540

.710

City of Dublin Bank inL

O.SSfl

Aug 13

• 0.88

_ — - • ■ ■

-2B9

Clydesdale

47.5§

Aug 20

37.5

75

50

Coalite Group

3.1

Aug 2

2.8

4.53

4.16

James Crean inL

2J5

July 14

2

_

.7

De La Rue

15.48

July 31

1 4.4

22.08

21

Alfred Dunhill

6

—

6

11

10

Edinburgh Gen. Ins. ...

Nil

—

—

0.3

—

Fleming Amer. Inv. Lot

3

Aug 2

3

—

9.5

Griqualand ExpL ...inL

7.5§

Aug 20

—

—

15

Harrisons & Crosfield _

20.5

—

20.5

28

28

Lake & Elliott int

1

July 22

1

—

2.5

Marley int

1

Oct 1

1

—

£25

Readlcut

o.r

—

—

0.1

0.1

Stilfonteln int

. 100§

Aug 6

130

—

310

Trans-Natal

355

Aug 20

20

GO

38

West Rand Consolidated

Nils

—

5-

— '

15

Dividends shown pence per share net except where otherwise
stated. * Equivalent after allowing for scrip issue, t On capital
Increased by rights and/or acquisition issues, t USM stock. ' fSoiith
African cents throughout U Irish.

THE IMPROVEMENT seen by
Edinburgh General Insurance
Services last year at the time of
the rights issue, has not been as
good as expected. The final divi-
dend of 0.7p per share fore-
shadowed then has been omitted
and the board does not expect
to' recommend an interim in
respect of 1982. .The interim for
1981 was 0.3p net
. The company, which carries
on business as a reinsurance and
Insurance broker "and under-
writing agent reports a pre-tax
profit for 1981 of £140,649,
against a loss of £213,768 previ-
ously which was after an excep-
tional debit of £166,853- Tarn-
over totalled £2Jim (£L12m).

The directors explain that in
view of the continuing weakness
of toe world economy and very
competitive conditions In
general insurance markets
(specifically in toe British motor
insurance market which affects
Andrew and Booth), and with
the need to conserve cash
resources in mind, they have
concluded that it would be im-
prudent to pay a final dividend
for 198L

They continue to address

Harrisons & Crosfield

PLC

SUMMARY OF RESULTS

f or i] ie y earen ^ 3 j s ti) ecem ]j er jg 8 i (Subject lo Audit) ■■ ■- ■ ■

TAXABLE LOSSES of Caravans
International were cut from
£2 .26m to £L79m in the first half
to February 28, 1982 — the com-
parative figure having been
adjusted to exclude a 51 per
cent interest in the group’s South
African subsidiaries sold on

January 26, 198L Sales fell from
an adjusted £25.53m to £22.48m.

The interim dividend of this
caravan manufacturer ' is again
being missed; last year no

distribution was made.

- Trading conditions continued
to be very difficult for the
group’s UK and other European
subsidiaries, the directors say.
Full benefit of a major pro-
and Booth of .gramme of reorganisation and

full-year pre-tax concentration — which was Im-

plemented last autumn— was not
felt by the majority, of toe sub-
sidiaries concerned.

All subsidiaries concerned are
now enjoying the full benefit of
toe programme, they say. While
there are no signs of arty real
improvement in trading con-

ditions, they nevertheless believe
the group will earn a trading
profit in second six months, com-
pared with a loss last time of
£lJ.7m.

Hie reorganisation has released
for sale certain off toe group’s
fixed assets. Certain disposals.
Including toe sale and lease-back
of the Cl Atttohomes factory at
Parkstone, and the sale of
suigrius land there for an aggre-
gate price of order of £800.000,
are under negotiation. The
directors intend, to send a
circular to sbareboklers, giving
full details of the di^osal which
is to be effected by end-Jidy.

The pre-tax losses were struck
after depreciation of £259,000
(£335,000), associate company

themselves to toe problems and
say that much ha* already been
achieved tins year that will lead
to further substantial cost
savings and a continued
improvement in results.

Tax charge for the year was
£10,573 (£27,012 credit) and

there was also an extraordinary
debit of £37,782 (nil) and
minorities of £1,305 (£271).

Stated earnings per 10$ share
were Q.3p (3.3p loss)'.

- The group profit was after
crediting post-acquisition profits
of Andrew
£211,026 — its
profits were £47&203.

UNITED PARCELS

United Parcels has acquired
from Bowater Corporation the
express carrying business of
Nationwide Express Parcels.

The consideration is based on
the net assets being acquired
which comprise fixed assets of
£361,033 ahB net current assets
Of £39,040. The total of £400,073
has been satisfied as to £400,000
by issue of 227,046 ordinary and
balance in cash.

HIGHLIGHTS

Lex looks at toe figures from 'Allied Lyons which has
shown pre-tax profits up from £112m to £141m, after £17m
or so in each year of property profits. The dividend is
increased for toe first time in nearly two years. De La Rue
has produced a one-third fall in profits to £22m after big pro-
visions against bank note losses and trading in electronics.
Harrisons and Crosfield, which on Tuesday announced the sale
Of its majority holding in HME, reports a solid second-half
performance. Lex comments on these figures and the outlook
for toe reshaped groap before moving on to consider the CSX’s
annual report published yesterday and its remarks on agreed
bids. .

198L

• comment

Most of the 9 per cent improve-
ment in Coalite’s pretax' profits
came from .a three and. a half -
fold increase in interest receiv-
able. This is pertly a reflection
of toe fact that stocks, at as
abnormally; high level at the
beginning WE the year, were
reduced by over £ 32 in . At the
trading level, toe rise . in profits
was only 3.4 per cent; on the
sclid fuel and fuel distribution
fronts thi s is one company
which has done well out of - the
severe winter. Coalite’s fuel'
businesses are however largely
dependent, not so much on
volume, but on toe prices of ofl
and coal, and toe firming up of'
oil prices is an encouraging
factor for the current year. As
regards growth in demand for
fuel oil. Coalite is m toe long
queue waiting for a recovery in
toe industrial base. No provi-
sion has been made for any
losses which might arise out of
the Falklan d^ crisis; If the
Government derides to invest
heavily in the Falkbmds*
economy, however, then Coalite
will benefit more directly than
anyone. After the results, the
share price closed lp higher at
117p, yielding 5.7 per cent, and
. on a p/e of about fij. Not very
demanding for an energy
related share.

SPAIN

Price

Group profit before interest and taxation
Group profit before taxation
Group profit after taxation

»*T TT P nr rtTl1 P Ty* T ^ Tt> l)

Earnings for Ordinary shareholders

(before erriiai^ rifflenences and g-v rr i iai’ I nTaiyTft-t fflift

Earnings per Ordinary share
Dividends per Ordinary share

Lets

1981

1980

£>000

£*000

57,295

59,544

47,235

51,016

26,328

29,521

22,797

25,483

30,147

27,530

37.1p

46.6p*

28p

2 8p

PLANTATIONS

Operating Profit £Z7Jnt (I980£29j0m)

Owing to lower commodity prices results from Group plantation
companies are below those for 1980. Higher crops in the secondhaif
Of the year made a major contribution to the sizeable Improvement
In profitability in that period. This trend continues.

CHEMICALS & INDUSTRIAL

Operating Profit £10. 7m (1980 £7. .4m)

Demand remained poor for the specialised rbrrtmp chemicals used
in the aerospace industry and while there was an upturn for other
chrome chemicals and some Durham Chemical Group products*
the UK mnnnfart nring business had a Om-hrnare^gg

in America achieved excellent results both in manufacturing and
distribution. All toe Uoatex companies performed wefl.

TIMBER AND BUILDING SUPPLIES

start of 1981saw new honsectmstnirimriTTiTTipTTK gT-TfreTm y^ -

toe year were wdl below expectations. Trading improved in the
second half of toe year until late November, whereafter results
suffered fiom the hard wnma:

GENERALTRADING

Operating Profit £7Mm (B80 £S.4m)

Onr two major companies in Malaysia and the company in Br urrfj

together with our commodity operations, were the top earners.

and bv om Sri I^ nta. Aust ralia and New ZralanH mm pmi^ i

1981

%

1980

%

United Kingdom — rilIT - - ,

9

10

IK

lo

70

North America

mmm UU

/U

Elsewhere (mainlv Australasia and Europe)

— 9

0

6

100

100

Ordinary dividend

The Board recommends a final dividend of
205p per share, making a total of 28p per share-

Prospects

TOdd trade remains depressed and
so far in 1982 there is little evidence of
increased economic activity in the indus-
trialised countries. While Grange p lanta-
tion companies are benefiting from higher
crops and die Timber and Building Sup-
plies Division is enjoying more bnoyant
tradings our chemicals and industrial

operations ccmtinueio be adversely aEfecteibythe

recessionary conditions.

The proposed sale, subject to shareholders?
^prevd 3 of our controllinginterest in Har-
risons Malaysian Estates PLC to Permoda-
lanNasional Berhad 3 annotinced yesterday
wKl produce an immediate and substantial
reduction in interest costs and will provide
fends &r future growth in the Gronjfs
specialised areas of activity. A circular set-
ting out derails of the proposals wiH be sent
to all shareh o l de rs as soon as possible.

losses of £55,000 (£74,000) and
interest costs of £959,000
(£984,000). There was no tax
charge (£17,000). FoHowmg an
extraordinary credit of £353,000
(£36^00 debit) for toe profit on
toe sale of property sales, toe
attributable losses emerged at
£L44m (£2 -31m).

• comment

There seems to be no end to
Caravan's confidence in itself. A
year ago, the company predicted
It could contain losses in the
second half. When it didn't, the
group then predicted this year
would be “substantially better
than last In the first six months
of this year, it has lost more than
it did in the whole of last year.
Even so, it is now forecasting
return to profits in toe second
half. By selling off its only profit-
maker, Caravans’ South Africa
subsidiary, the group has whittled
down its borrowing and says

capital gearing is now less than
100 per cent This is hardly
an awe-inspHing achievement,
especially as attributable losses
this year wiH certainly shrink
shareholders' funds further.
Caravans has reduced its UK
staff in the last 12 months by 30
per cent On this and other cost
cuts are pinned Caravans' hopes
for a return to the black in toe
second half— the market for its
products remain dismal The
shares added Ip yesterday, and
are 2p under par at 18p. Market
capitalisation is £1.5m.

-June 2 %

Banco Bilbao 352

Banco Conjral 337

Banco Extenor 306

Banco Hispano 31 S

Banco Ind. Cat. ........ 114

■+'or —
:+3
:+5
'+B

i+2

Banco Santander ..... — .

327

:+z

Banco Urquijo

189

+2

Banco Vizcaya

367

:+4

Banco Zaragoza

249

! +2

Dregados

140

i+4

Espanoln Zinc

70

Fecaa

65.5

-0.7

Gal. Preciados

33

Hidrola

6/.2

■—0.8

iberduero

52

.Petraleas

90

1+3

Petra Ii bur

99

Sogefina

10

:+i

Telefonica

71.5

Union Elect.

62.7

^ 0.3

Anglovaal Group

Declaration of Dividends
Mining Companies

Dividends have been declared payable to holders bf
ordinary shares registered in the books of the undermentioned
companies at the dose of business on 25 June 1982. The
dividends are declared in the currency of toe Republic of
Sooth Africa. Payment from London (in the case of companies
which have London Secretaries) will be made in United
Kingdom currency and the date for determining the rate of
exchange at which the currency of toe Republic will be
converted into United Kingdom currency will be 5 July 1982,
or such other date as set out in the - conditions subject to
which toe dividends are paid. These conditions can be
inspected at the registered office or office of toe London
Secretaries of toe companies. Warrants in payment of the
dividen ds will be posted on or about 30 July 1982. The
tranrfer books and registers of members of toe comp anies
will be dosed from 2$ June to 2 July 1982, both days inclusive.
AH companies mentioned are incorporated in toe Republic of
South Africa,

NAME OF COMPANY

pa

64

50

no

63

275

650

zzzmammimm

20

47

110

Notes

*■ i ff™ 0 *™™ -Mownwon United tea not declar ed on Interim dividend for
1982 *****

By order of the boards
ANGLOVAAL LIMITED
Secretaries

per E. G. D. GORDON

2 June 1982

Registered Office:
" Anglovaal House
56 Main Street
2001 Johannesburg
London Secretaries:
295 Regent Street
• London WUR 8ST

NEW!

UNIQUE!

FREE!

FTB f s 60 minute presentation on
Financial Communications.

Ring Alex Hurst; FTB’s Chief Executive, on

01*4058733

and make a date to see this .interesting presentation.

Poster Turner & Benson Advertising Ltd

Chancery House, Chancery Lane, London WC2A 1QU

Newman

HOLDINGS P.LC.

Extract from Chairman’s Statement

K Ihave to report oh the yearto 31st December last
a Group result that is only slightly better than
break-even. This is naturally disappointing on the
sixtieth anniversary of the Parent Company but
taking into consideration ail the unhelpful factors
affecting trade today and, in particular, the airline
and shipping industries, I feel that some comfort
should be taken from the fact that the adverse
situation was contained. Every effort wHI
continue to be made to maintain profitability and
this is the task for Directors and staff alike.”

F. E. F. Newman, M;C.

Chairman

Summary of Results

Turnover
Operating profit
Profit before taxation
Taxation charge (credit)

Profit after taxation •

Shareholders' funds
Extraordinary item . -
Dividend per Share
Earnings perShare

Copfes of the Directors' -Report and Accounts for 1081 may be obtained from
the Secretary, Davies & Newman Holdings P.LC , Bilbao House. 3088 New
Broad Street, London, EC2M 1NH.

M. J. H. N ightingale & Co. Limited

Telephone 01-621 1212

1981

1980

£000

£000

154,472

153,815-

1,335

3,287

342

2^350

284

.

58

2,532

r 16,352

16,447

■ —

2,082

3.0p

9^4p

I.Op

44.6p

27/28 Low Lane London EC3R. 8EB

1981-82
High Low
120 .120

130 100

75 62

51 33

211 187
IQS 100
265 240
104 61

131 97

83 39

78 <6

102 93

110 100
113 94

130 109
334 234

67 51

222 1S9
15H 10
80 66
44 26

103 73
263 212

Company

Am. Brit. lod. ' Old,
Asa. Brit. Ind. CULS...

Aii-sprung

Armltage a. Rhodes

Bardon Hilt

CCL llpe Conv. Pref....

Cindico Group

Deborah Services ......

Frank Horsall

Frederick Parker !![

George Blair

• n 4- Precision Castings

I us Conv. Pref

Jackson Group

James Burraugh

Robert Jenkins

Scrutuns -'A''

Tortfay & Carlisle""”.'!.'

Twinlock Ord

Twin lack 15pc uis ” ..
Unllock Holdings !....!

Walter Alexander

W. S. Yea tag

Prices now available

„ P/E

- • ^ Grass Yield Fully
Pnce Chengs div.fp) % Actual a«rf

120

128

74
43

211

103

285

61

130

75
54

+ 1

+ 1

B.4 3.3 10.9 73*

ion 7.8 — —

6-1 8.2 8.4, 145

4.3 10.0 3.0 ■ 8.1

9.7 4.6 10.2 12jB

T5.7 14.S — ■ —

26 A 10.0 10.7- :12J)

6 0 9.8 3.0 ~ 5.7

6.4 4.9 11.7 '24,1

• 6.4 '8.6 3S' .’ 7J3

110 + 1
105 ■+ 1
114 —

234 —

67- —

159 —

15*j —

76xi + 1
23 —

84 _

234 + i

7.3 7.4

15.7 -14.3

7-5 7.1

9J 7.6

31.3 13.4

5.3

10.7

7.1 -108

32 ■ ' 67.
B.3 105.
32- • S3
7.9 125 '12.0-
6.7 5.I .". 95

15.0 18.7‘ — '

3.0 12.0 45‘. . 75

6.4

145

on ’Pres tel a#ajB 4 ^ 4 ^

7.6 33 ; 9.7

0.2 ' 6 . 1 ; .122

LADBROKE INDEX

Close 583-588 (-1)

thetringh

USMINDE

125.3 (+0.3)

Close of business'!
BASE DATE 10/llj
Tel: 01-638 15S

f. Jusie

/ies

VTTK

S P.L.C.

jtemsrji
1st Deesmberte
ighily setter ft
;ap? c inting

enl Germany £
junhelsiuifsc^

hat sc r,a ccfl*
: that the sf* 5
iv©rv sf'ort

'n P»s:«®. ?
id s:sU t'-'V-

:. f.

Cr-S’- r '

Financial Times Thursday June 3 1982

HoHpaHias and Markets UK COMPANY NEWS

van C(is

*2tn

tav

*OSe at r

in the fiiA
19S2, o* - v ^r ' J
3S.im . 0r \ HinJ* 1

Second half puts Readicuf hack in profit

* dsp, i,,

“* T' SI^S-

h:

-tl' n ^ It
>re-tav fl 4.;

dl =g v

<n cf J

too}'; n ■). *

5 JJWw.SaS.S!

01 Stock r-iV «i .
05 01

nment

9 r-'*r rt-r-

■ Coalite*

•0“ a ’W/t**:-

£** «

"is i5 sar.;/!*

fact :. * ^
*V {u^ '*<?
IS or -ho ..- 1 . a
O?” 07 *r t

lev?!. *

iv 3 i .... ■*■ k d>
*«* W 0=^'

sas doce

Winter, cL^W
but

or the .'-A 3 . cil!r i

,-airing - t! . a
its mai ca !.-• v,

“ *« **&*
hich nsish: sr »4k

JWasds 'c-iq, 5
®ent d-W,,"

• h 3 - r afer

»• n^-oicr. tw-7

se£r td',-0 d,45v'

e-di^- 5 7 r ; r S.

e of as ••!■ ;• vL'

in? ; !r" a :

sriars.

THE BENEFITS tif rationalis*
"non carried oat and - substantial'
savings on costs enabled Readi-
est- International, manuf acturer
- of rag kits and specialised' tex-
tile products, to move back Into
the black for the 12 months to
March 31 20SL-

•; At the pre-tax level -profits
were £230,000, compared with
losses last time , of £^.96m. The
' directors point but that although
the group returned to profit the
outcome was marred by the
failure of De Lorean and by the
slowness of recovery -in the
markets...

'They add that the outlook for
1982/83. is at. best one -of alow
econom ic recovery with any
revival being heavily wetted
towards t he firs t quarter of 1983.

' The - group ' had • already
reduced its losses from £L$2m
to £595,000 after the first six
months and a continuation 0 f
the Improving trend was looked '
for to the end of the year.

The second half was helped
by a high level of activity in the
fourth quarter and favourable
exchange rates. ...

Full year turnover amounted

to £95.71m '(£83.99m)'. The pre-
tax surplus was struck after
depredation of £3m (£2. 77m), a
provision of £982,000. for. De
Lorean - losses and " interest
charges of £L9m (£L85m).

There was A tax credit of
£157,000 <£888,000) and after
extraordinary debits of £3 .04m
(£2 m), . comprising mainly
expenses on closures and
redundancy payments, there was
a loss for the year of £2. 65m
(£3.07m).

An *ahalysis of the pre-tax
profit by division, shows: hamU-
crafts £51X000. (£109,000), furn-
ishings and 'textiles £ 1.63m
(£622400), yarns and - fibres
£981,000 loss . (£L65m loss),
carpets £970.000 (£89,000 loss),
services £594,000 (£656JOOO).

Losses of discontinued businesses
totalled £632,000 (£493,000) and
corporate interest and expenses
accounted for £lB6m (£Lllm).

The' group passed its interim
dividend but is paying a nominal
net final of OJp (same).

In the handicrafts division im-
proved customer response com-
bined with favourable exchange
rates, resulted in encouraging in-

creases in sales and net profits.
Further progress was made In
the building-up of the Readiest
rug kit • subsidiary in North
.reached the planned higher
levels. The loss incurred was
slightly less than last year;
Prospects for the current' year
are good.

In furnishings and textiles
Firth Furnishing returned to
profit, the improvement being
bruogha about by rationalisation
of manufacturing facilities, cost
reduction exercises and im-
proved control of incoming
stocks and prices. Competitive-
ness ' in i he division wiil con-
tinue to play a major role in
maintaining profitability, ' but
several companies have good
order books at the present time
end It is hoped that 1982-83 will
be more successful.

Total sales in yarns and fibres
were S per cent up on last year
with the lose, although stHi sub-
stantial. down by 40 per cent due
to higher earnings by Flaeti
risers’ associate engineering

company.

In the carpets sector Firth
Carpets increased its sales and
earned a '‘very satisfactory 1 *

profit. Sales of Bloomsljurg
(acquired in July) were on plan.
Looking ahead * there will be no
easing of the difficulties” ex-
perienced during 1881-82.

The directors say their deter-
mination remains to improve the
cost structure through further
reshaping of each business
entity within the group.
Although many difficulties lie
ahead they say the group is much,
better placed than a year ago to
gain momentum when trading
conditions improve,

• comment

Beadicut has hauled itself into
the black, - The figures could
have looked better had not £}m
or so of currency gains been
wiped out by losses against De
Lorean. Half the £582,000 is
against bad debt . and half
against now worthless specialist
carpet sitting in the warehouse.
De Lorean employees in
Northern Ireland are not the
only ones hoping that somebody
harbours a dream of resurrect-
ing gull-winged sports cars.
Meantime an axe has been taken
to the disastrous 1960 purchase

of Snappies. Cheap imports cut
the legs from beneath the com-
pany which has sow been sold
Virtually all of the £632,000
“ discontinued businesses " loss
wa® Snappies and £L3m of the
£3m exceptional costs related
directly to that involvement.
The other perennial problem.
Plasticisers, lost . another £Lm
lost year but, the. management
hopes. 1982-83 could be the year
when the black pen gets used.
Anyway Beadicut is confident of
some overall partial recovery.
Not that tiie market place is
improving but having chipped
35 per cent off its work force in
two years along with other
overhead trimming Beadi cut's
cost base Is that much lower.
Profits this year might reach
£2im pre-tax which could pro-
vide something better than a
nominal dividend though the
management is very aware of
capital gearing getting up- to 50
per cent. BedudDg that is high
on the priority list At 20}p

(market capitalisation £15.Sm)
the shares look stuck until the
profits recovery shows in a
more positive way.

MINING NEWS

De Beers tailors its
output to demand

6Y KENNETH MARSTON, MINING EDITOR

Dunhill
leaps to
£5.22m

Lombard North Central
rises £5m at midtem

BURDENED with big stories of
unsold diamonds held via the
Central Selling : Organisation,
South Africa’s De Been is
tailoring its- mine output more
to what the currently depressed
market is prepared to buy.

Xn a nutshell, these are the
smaller and cheaper gem stones
for which qualities there is a'-
continuing steady demand. The
larger, am) expensive, higher .
quality stones, which came into
the investment category, remain
a poor market . as a result
cf previous . over-speentetaon
foil-owed by the world economic
downturn and the 'rise in interest
rates.

De Beers is thus suspending
operations at its Kaffiefootein

mine which last year produced
some 322,009 carats, mostly of
htgier grade gem' stones, and la
stepping up production by lm
carats to 4$m carats a year at
the big Finsdh mine Which
produces a large proportion of
the lower quality and more
saleable gems.

A similar switch is to trice
place in the Namaquaiand
division where production is to
be transferred from, the Annex 1
Kleimee ..plant area toi the
Tweepad area.

- The overall -effect of these
moves sboL?M be an increase in
dJam ood sates while the closure
of Koffiefoatein and expansion of
Finsch should bring savings in
operating costs.

Now in losses Teck to
dose big Afton mine

WITH IMPROVED Far East
trading, (favourable exchange
rates and management action
taken in the first half, second-
half taxable profits of DahhUl
Holdings leapt from £lA3m to
£3.14m, bringing the total for the
year to March 31 1982 to £5 .22m,
compared with . £2£4sn. The
year's turnover advanced from
£61. 25m to £72.S8m.

The final dividmd of this
smokers' requisites and fashion
products group, which is a sub-
sidiary of Rothmans Inter-
national. is being maintained
at 6p net per lOp Share, making
a higher total of Up (lOp). Earn-
ings per share are stated lower
at 3ZAp (42p before extra-
ordinary Hems and 5B.lp after).

The directors say that further
actions were taken during the
second half to rationalise the
group’s operations, especially in
the UK

There was a tax charge off
£2. 44m (£377,000 credit) and
minority debits came to £41,000
(£330j000 credits). Last time
there was also an extra ordinary
credit of £L19m.

PRE-TAX PROFITS of Lombard
North Central, part of the
National ’ Westminster Bank
group, rose by £4 .9m to £22.7m
for tiie six months to March 31
1982. Including a tax credit of
£30m, against a £3m charge last
time, det figures showed a sub-
stantial advance from £14£m to
£52.7m.

Group turnover, representing
the amounts financed under all
forms of financial agreements
entered into during the six
months and excluding amounts
attributable to - banking,
amounted to £577. lm (£412m).

Profits attributable to ordinary
holders climbed from £14.6m to
£51. 5m, after minorities and
preference dividends. Stated
earnings per share moved up
from 23.6p to 83.2p.

In the six months period there
was a substantial increase (39
per cent) in the volume of new
business written in the UK com-
pared with the same period a
year ago. Most of this increase
was attributable to the corporate
finance department, which is
responsible for “big ticket**
leasing, but there was also an

BIDS AND DEALS

increase of 15 per cent in the
total number of new transactions
undertaken.

Although money costs were
marginally below the average
level for the corresponding six
months of 1980-81, they were
materially higher than In the
previous six months. Defaults
have continued to rise and this
is reflected in an increase in
provisions against possible losses.

Profit contribution from over^
seas subsidiaries improved to
£4.7m. mainly from Australia,
and included a £1.9m surplus
arising on the disposal of a half-
share in a shopping centre in
Western Australia by Rocking-
ham Park Pty. Profits of the New
Zealand subsidiaries were
slightly down on the same period
last year. . .

Lombard Tricity Finance,
which changed its name from
Tricity Finance on January 1
1982, suffered from high interest
rates and Increased arrears, re-
sulting in a reduction in profit
to £0.6m for the half year.

The company says it is not
possible to make any - sensible
prediction of tfie likely outcome
for the full year.

HEAVILY dependent bn the
price of copper, which continues
to decline, Canada’s Teck Cor-
poration reports a loss- of C$SJ5m
■X£3.8m) for the .six months to
■ 'March 31 compared with a net
: profit ' of C$lD.fim/ In the same '
period of a year ago. .

Because of low copper prices
— now below the cost of produo- .
tion-r-Teck is. to dose its big
Afton mine in British Columbia.
The planned (closure is- nomin-
ally for; three months, but the-
company .says that- the duration •
of the shutdown will depend on

metal prices.

■ West Germany's MetaHgesell-
sehaft has a 27 per cent stake in
Afton which produced 45m lb of
.copper,- ' 41,000 ox ' gold and
246,000 ox silver in ihe year to
September 30 198L . ,

During the pest half-year both
Afton and Tack’s. Highmont
copper mine recorded losses as
a result. of low metal prices and
high interest; rates. However,
tiie company’s zinc, niobium and
gold-stiver properties - (Lamar-
que, Silverfields and Beaver-
dell) all operated profitably.

British Esperanza disposes of
Sugar may its Trausmarcom stake

BlHlCHl Esperanza Overseas Holdings shareholders' . approval, 'are

**■17 (EoH) plans to sell its 85.9 per depressed trading conditions in

British Suear is still examining ceot holding in its Belgian Belgium and. the weakness of

thr^StiS ofbasiJS its *«ght forwarding agents the Belgian franc. TBM is

SfonSTaPainfft anv renewal of Traafflnarcoqi to its ma n aging currently only managing to

l^ WlC vea?s B bitterly ^opmSsed * rector for a* 0 ® 1 *554,000. break even, according to EIS.
£2fHhn bid from the commodity TOM'S activities have started

£200m bid from the. commodity
trading group, S. & W. Berisford,
on European ramparts.

ROUND-UP

director for about £554,000. break even, according to EIS.

TOM'S activities have started . I J^ c f o r0m TR ^ a K£ utaW ®
to conflict with those of other litjke 85.9 per
parts of the Esperanza Interna- amounted to £144,000 m the
tional Services (EIS) group, EIS t0 pi. 1981 oo gross

Not content witii the Ann 7 w fiEr toi revenue of £3.14m.

rebuttal last week by the. Euro- It therefore proposes selling wotiuwtob wm pay wrim
pean Commission in response to t0 Worldwide Gulf Enter- ca * 1 BFrlum due on

British Sugar’s attempt to force a company controlled by completion and the rest in three

Berisford to divest its 40.02 per Mr Harry wdilfc, TRM’s approximately equal annual
cent stake in the sugar beet managing director. mstaiments, with Interest on the

producer, the group is under- „ w .. ^ . n nftr deferred payments of 15 per

Fnli production has been
resumed for the past two weeks
at . the. shafts of ihe gofld-
producihg Free "'State Gedold
-mine whidh were damaged by
earth tremors last ' . month.

. Amtauncrng tins, Anglo
American Corporation adds that
there will he a slight shortfall
in the forecast tofinage of ore
mailed for the year but ..overall
gold output shatdd not be
• adversely affected th anks to
increased - production from, the
higher grade areas of the mdne.
* ‘ * * -.

Vancouver's _ Ni-Cal . Develop-
ments can still count on the .

Btmport. of ■ NCC Energy of Ihe
UK in its plane to develop a
nldkei-cobaJt depost on the
Cdffbrcaa-Oregtm bolder. Mz
Edward Cook, who recently
-replaced Mr Graham Ferguson
Lacey as dudrman of NCC
Energy, sadd bos company
planned to retain its 24 per cent
stake- in Nj-CaS, sod supported
the. present management’s aims.

Ni-Cal has been operating a
pilot plant at the deposit, at
Gasquet Mountain, Mace lost
summer, and. has established that
the oapitri cost of a fuil^scade
mine would- be.' around 83QOm
(£16ta).

Worldwide will pay BFr 44m
Mi with BFr 10m due on

r Harry Wdilfc, TRM’s approximately equal asnmal
anaeine direotor instalments, with Interest on the

deferred paymenis of 15 per
Mr Wolfs already owns 10 per ce ^ •

stood to be considering an appeal " V 1 £2J a! W " (xrxL

to the European Court of Justice cent^ TRM, while tiie i^ah^ When the sale has been
in Luxembourg. 4,1 per C ^1 ctnnpleted EOH will acquire from

sSSkST* the National KK2S “* TKM the 48 per cent o£ Gelletly

- transaction, EIS saod. Shipping, a shipping agent,

A further reason for tiie sale, which it does not already own,
for which EIS is now seeking its for BFr 4m (£50,000).

EUROPEAN OPTIONS EXCHANGE

| ' Aug. *. f Now. j ' Feb. I
Sarin VoL I Last | Vol. I Lett. M | .Uttt I Stock

Sugar Beet Spring Demonstration ”7 “! , .

in Shropshire -yesterday, the chief . A further reason for me sane,
executive of British Sugar, Mr for which EIS is now seeking its
John Beckett, said that the board

may appeal to the European -w-v • i x 1

Braid sees Lookers as

that there were insufficient • _ _ m

grounds for considering that rtiVYfcQ'f' ftfl, iTQIU'hlCDC
Berisford had abused a dominant LULL t/dl IU JJl dllLlliiJVa
market position in the EEC.

British Sugar will require a THE bid from Lookers, the
swift, and favourable, response motor vehicle distributor, for
from the European lawyers since Braid Group threatens two

from Lookers, the of Braid 1 turnover,
cle distributor, for In view of the serious canse-
up threatens two qoences the loss of .the Ford
Ford franchises, main dealership franchises

Berisford will be free under the important Ford franchises, main dealership franchises

terms of the City Code to re-open Braid claimed yesterday in its would have on the future of

its bid from the beginning of reply to the offer. Ford business Braid, the directors and their,

next month. . accounts for about 23 per cent financial advisers, Samuel Mon-

— ... -- ■ - ■-] tagu and Co., believe Lookers

^ s h 0U ]a explain how., in. the

I { makes commercial sense. Braid

June %. Total Contraots 1013 Calls 735 Puts 278 said.

• July Pet. Jan. ■ The Braid board repeated -its

ovum X 8 vw - °5fo n r 9 Vc>1 - W VoL E ctt adrised^^reh old er^ to take no

— - — -i — ; — action.

bp (e) - 300 as e 38 — 46 — |3i6p Ford has terminated Braid’s

SS £1 - gg ‘ ® % i5 20 12 ” ” franchise agreement for its main

cuS 120 18 - i§ : II 4 I33p dealership in Burton-on-Trent

cu <c> < 130 12 — 17 .2 22 2 „. and advised it will not now con-

cona. Gtd (c) 360 16 — 28 2 40 — 364 p firm the proposed frandiise for

Cona. Gld(oi 390 5 — 17 22 27 — n Maerlesfield. ■ both ‘pending the

Con*, aw (c) 600 m — 3 2 - — „ swcaesneia, a □ lo

com. Gin (p) 360 20 — 38 31 40 — „ . outcome of the mo. Braid, said.

Cons. oid. (p) - 3flo bo a ao a 67 - „ Braid currently has temporary

ESSifS so I 39 ‘i„ ii i! =

Ctidc.to) 100 2 — 41b a 8 — . _ . dealerships wmen expire on

2T" n J 1 - »7 -mt Ajgjrt 12 ol. June 80 refflec

GEC (c| BSD 107 2 135 — 166' — „ «' tivedy. . .

gec (oh soo 68 7 as 2 118 - „ Braid podoted out that Lookers

OEC fpj 950 29 28 47 . 5 77 had made Its Offer dependent on

oic ^ ia la 2o — 27 — no action being taken by any

ohmS 960 26 8 -34 — 42 — f supplier of Braid which wwdd

Gr*d Mat. (cj 214 -12 — 17 Mi 22 - 2iBp . materially adversely affect

SL'5!5i-} c ! £22 ,2 48 43 6 12 V. ■■ either company.

bp to -

BP to)

BP (p>

CU (al
CU (C> ■
Cans. Gtd (cl
Cora. Cld (o)
Cons. GW (ci
Cora. Gld (p!
Cons. aid. (p]
ctWs. to)
Ctlds. (o)
CtJds. (o)
-GEC (o)

GEC (0
GEC (al-
QEC (p)

GEC (p)

GEC (p)

I Gr'd Mat lei
Gr'a Mat toM
Gr*d Mat (p)>

ICI (d
1C! td)

ICI (O
Id (P ): 1 -
Mks*Sp.(c)
Mkaft Sp.to)

Shell to)
Shall Cb),
Shall (c)
Shed (p) *
SheO (p)

Barclays (e)
Barclay* (e)
Barclays [pi
Barclays (p)
imperfaJ (cl
imperial (0)
Laimo (d
Lasmo (c)
Lonrfio (p)
Loo r ho to)
P*0, (C) .. .
P*0 (0>
RacalCe)

BfB 1

RTZ (p)

Vaal Rfa '(a)
Van! ftft. (O
vaal ftfs. (p)
vaalRfs (p)
vaaf Rfs. (cj
vaaIRfs. ip)
VaaJRfm. (p)-

28 6
• 9 4

22 2
18 —
12 —
16 —
6 -
Us -
20 -
SO 8
9 . 3

3 39
2

182 . 1
107 2

68 7

29 28

a.. 26

12 60
26 6
12 —

8 '48

12 . —
54 1

36 -

■ 3 10

14 ■ . 6

9I> -

. 2 -
46 6

.26. ■ . 1
10 -

5 -

12 4

' 'August
25 . 37

. 6 22

4 -

14. 10

13 »

6 102

16 % -3

9 10
Sifi 2

12 5
21 2

15 1

30 6

13 5

9 32

BO ' 2

4 10

lh 25

ll 6

is SO
18* - |
38* 43

- 7U • SB

- P16p

4 133p

- 364p

- B6p

- 207

- 165'

2 118

6 77

- 9

- 27

- 48

M 22

6 17

- 19

- aiBp

nr :

- IS28p?

1 M

- 17 1 168 p

25 8 -26 „

_ 66 - 424p

9 ; 46 v -

1 SO

10 18 - "

- 26 - „

November
40 — 52

17 - 32

8 6 16

28 - 27

151* - 18

9 — 111

34 1 '47

February

- |463p.

- I - 147p

63 -

66

20 ' —

. 52

iai« —

32

67 —

60

6 —

7-

24 -

3ia

lh -

—

2 5

—

4W —

—

7 is -

9

10 k —

12 .

(*=Put •

Nefl & Spencer
only 37%
subscribed

The recent £0.5ur rights issue by
Neil and Spencer, the troubled
laundry and dry cleaning equip-
ment-manufacturer, has- "only
attracted acceptances in respect
of ' 138m ordinary shares, or
approximately 37- per emit-
Last month, the company
asked shareholders to disregard
two profit forecasts made when
thbe rights issue was announced
in April. Subunderwriters were
released from their commitments
at that time.

The shares not taken up were
placed in the- market ■ .at a
7-64thsp premium over the rights
price. Baring Brothers, which
underwrote the issue, now holds
7.8 per cent of the issued share
capital

The De La Rue
Company p.Lc.

Setback in currency business
offsets progress elsewhere

“The adverse impact of political upheaval and economic
difficulties in certain banknote client countries is particularly
galling when almost every other sector of the Group has
performed well in the second half of the year? 1 *

“The Board expects the current year to be substantially
better; although heavily weighted towards the second half,
and is demonstrating its confidence by recommending^
increase in the final dividend.”

Sir Arthur Norman, KBE, DFC, Chairman

Main features of theTfear 1981/^2

The results are considerably worse than were to he expected as late as last
Decem b er.Tradin g In the second half shows a small improvement on the first six
months., even the ugh it has been judged necessary to make very substantial
provisions against the impact on our banknote printing business of political
upheaval and economic difficulties in certain client countries.

Theeffecthasbeenfo depress the Group’s profit before tax by something of file
- order of £9 million. The Board has dealt with this unprecedented situation so as to
create a more certain and therefore a sounder basis for the short and medium
term operation of a most important parted our business.

Almost every other sector of the Group has performed well in the second half.
Our security printing businesses in the UK, Colombia and Brazil have produced
record results; Secnrity Express has surmounted the problems caused by the
recession in the UK very creditably; De La Rue Systems has achieved a major
tumround; Crosfield Electronics is back in profit; the contribution from our
Associated Companies has been satisfactory.

. Expectations far the year were of course severely reduced by the poor
performance of Grosfield Electronics in the first six months. The improvement
achieved since then, while undoubtedly welcome since it shows a significantly
upward trend, has nonetheless not been on a scale sufficient to restore anything
like the level of profitability which we were looking for

Exports from the TJK were worth£116 miUioii,no mean achievement in ayear
When the volume of world trade was contracting fast Margins have suffered as a
direct consequence but market share has been maintained, and order books for
the new financial year are at a higher level than twelve months ago.

The setback suffered by the Group is viewed by us as an event which can occur
in an enterprise such as ours which in general is of high risk, high return nature.
There has however been an overall cash inflow of almost f 9.0 million during the
yeai; as against an outflow of some £24 million in 1980/81.

• We have furthermore notbeen deterred from continuing to invest heavily in
our existing businesses during the past twelve months, nor from entering into new
ventures closely related to them. Among these is the PRINTRAK computerised
fingerprint storage and retrieval system recently acquired from Rockwell, the
major American defence contractor. There is worldwide demand for a system, for
purposes of -both national registration and criminal investigation, which can
confirm personal identification quickly and infallibly.

i An accelerated technical development programme is well under way and the
marketing of improved PRINTRAK systems has created widespread
international interest.

Results for the year to 31st March 1982

UX

Export

Overseas

Trading profit before interest
■ Interest receivable less payable

Trading profit .

Share of profits of associated companies

Profit before taxation
Taxation

Profit after taxation
Minority interests

Profit attributable to The De La Rue
Company p.l.c.
before extraordinary items
■ Extraordinary items

Dividends

Retained earnings

52,220

100,093

51,183

45,581

95,148

35,529

176,258

13,394

1,937

15331

21,937

7,110

24,786

8318

33,004

2;676

13,447

(806)

12,641

8,418

29,490

(1,663)

27,827

•8,007

19.820

Earnings per Ordinary share
• (before extraordinary items)

35 .3p

Earnings per Ordinary diare — nil distribution
(tefore extraordinary items)

51.2p

Trachng profit as a percentage of sales

7.5%

Proposed final dividend 15.48 net per share ( 1981 14.4p net)

Copies of the Preliminary Report and Chairmans Statement are available from
the Secretary: De La Rue House, Burlington Gardens, London W1A LDL.

Financial Times Thursday dime 3 1982

Ceapaaies and Markets

UK COMPANY NEWS

British Foods

;4. ! ^ la spite of the highly competitive conditions

. v in the markets in which we operate, the further
? progress of our retail companies and the

k ; i excellent results from overseas have enahledus

to maintain good profit growth for the third
successive yean? 5

y Garry Weston, Chairman

© Worldwide sales increased by 15 per cent-pre-tax profits by
21 per cent.

$ For the first lime the group’s earnings overseas exceed profits

from within the United Kingdom.

$ Arecord£L45minion (1981-£L00 million) investedforthefiiture
in new assets, financed by exceptionally, strong cash flow.

$ Balance sheet strength maintained with improved return on
capital employed.

Financial Highlights
Sales

Profit before tax
Capital employed

Earnings per share
Dividends per share

1982 1981

£ miUion £ million

2,969 2,574

139 1 15

753 ©4

22.3p 18.7p

4.3p 3.8p

Associated British Foods limited
Weston Centre, 68 Knightsbridge, London SW1X7LR

CHADBURN

pic

Inexorable decline in engineering
industry has inevitable effect

Points from the statement of
D. C. Bamford, C.B.E . , the Chainnan.

^ The inexorable decline in our markets in
concert with those of the engineering
industry as a whole has continued, with •

. an inevitable effect upon our results. The
brewing industry has suffered asubsfantial
fall in demand with a consequent effect
upon our sales of equipment This has _
caused us to discontinue our operations
involved in the manufacture of fermenting
and other large vessels. . ...

$ The decline in U.IC investment has also
seriously affected ourGenerat Engineering
Division which now comprises Chadburn
Bloctu be, Clayton Crane & Hoist and
Robinson.

^Turnover fell from £1 5.96m to £1 3.65m,
with an accompanying severe reduction
in trading profits and a loss at the pretax
. level of £181 ,Q00 after charging abnormal
expensesof £79,000. No divisionescaped
- the effects of the depression althoug h
Dispense Equipment for the brewing
industry. Plastics, and Senar remained
. - profitable.

The Directors propose a "token" dividend
of 0.35p per share.

# We continue to devote considerable
resourcesto the updating of our product?.
We are investing in our Plastics Division
and the further steps to eradicate losses in
the General Engineering Division should
bearfruit

A copy of the Report and Accounts and Chairman's Statement may be obtained from the Secretary:

PARK LANE • BOOTLE • MERSEYSIDE • L304UP

Harrisons & Crosfield slips to £47.24m

INCREASED second-half taxable
profits et Harrisons and Crosfield
of • £27 52m, compared .with
£215501, failed to make up for
a in toe first six months nnri
the group finished 1981 down at
£47.2*ni compared with £51 .02m.
The year’s turnover rose from
£72Qm to £SMsm.

However wife earnings p®
toare stated loner at 37-lp
' (4€.6p) per £1 abate, the final
| dividend is being maintained at
! 20JSp net, making a sme-agaai
! total of 2Sp.

The directors say worid trade
remains depressed and so far in
1982 toere is little evi dence of
increased ecorasnic activity in
the industrialised countries-
Wb3e the group’s plantation
companies are benefiting from
fuller crops and the timber
and building supplies division is
enjoying more buoyant trading,
its chemicals and industrial

operations continue to be
advesely affected by the' reces-
sionary conditions.

The proposed sale, subject to
toareboldecs’ approval of the
group’s coatrottixig interest in
Harrisons Malaysian Estates to
Bermodalan Naaonai- Berfcad.
wbH produce- an immediate and
substantial redaction ' in interest
costs and ’toll provide funds for
future growth is the group’s
specialised areas of ac&v&y they
say. A circular setting out
detefis of the proposals wfil be
sent to all rfwreboldtts as - soon
as possible.

A breakdown of the year's
operating profits of. HiLSSm
(£51_12m) showed: plantations
£27.08m (£29.03m); chemicals
and industrial £10.68m. (£7. 41m);
timber and building supplies
£6.8 lm (£9 .3m); and general
trading £7.02m (£5-5Bm)'. Also a
geographical division of these

profits by percentage showed:
TJK 3 OB); Asa 66 (70); North
America 16 (6); and elsewhere
— mainly Australasia and
Europe— ft. (6). . ./ .

During the year lower com-
modity prices pushed the planta-
tion companies results below
those for 1SS0. Higher crops hi
the second half increased this
profitability and this trend con-
tinues, the directors say.

In the chemicals and Industrial
activities demand remained poor
for the, specialised chrome
chemicals used in the aerospace

industry. While there was an up-
turn for other chrome chemicals
and some Durham Chemical
Group products, the UK manu-
facturing business had a difficult
year. The group's businesses in
America achieved excellent re-
sults both in manufacturing and
distribution, they say, and all the

r.?7ratflY 'companies ; performed'
well.

At the start of 1981 new house
cons truction, in the -UK was at
its lowert : level ■ for. many years
'and profits of -the. -.timber and
building supplies activities in
the early part of the year, were
well below the group’s expecta-
tions. Trading improved in the
second half until late November,
whereafter results suffered from
the hard winter. ' .v

Of the group’s general trading
divisions two major companies in :

Malay sia arwT the Company XXL

Brunei, together with its com-
modity operations, were tiie top
earners. Valuable contributions
were also made by its insurance
businesses, and, by its Sri Jianka,
Australia and New Zealand com-
panies, .t£© directors say.

.Pretax profits included a share
from associates of (£7.6m)

and investment /income of
£L27m '(£825,000)V r and r were
struck after interest payable of

'ao.o6m (£82anL

/ Tax'- took? £2frfllm .'(£21 Jm)Land
after minority interests of
£3.4Im ,(£3.92m)' preference

dividends of £120,000 (same),
and a credit of £7X5to (£2Sm
debit) for exchange differences
on net current assets, the
atribulable profits emerged at
£3015m l£27.53mL Dividends
absorbed £17.44m ,(£16-3eur)/
leaving retained profits . of
nZ7lUL;(£LL17m)'.

- At the" year end shareholders
funds ‘ Stood at : £26&28m
(£210 .32m) and loans anunmted.
to mSOk C£22^^n). F^d
assets were valued at £217.07Xn -
<£125J25mT and net - c urrent
assets . . ca&w to &03.63&-
(£l06i8m).- ■ " 7 4- I

- See Lex • ■

Empire £2.1m first-half shortfall at Marley

Stores loss
predicted

A’ “MOST UNSATISFACTORY "
outcome for the first half of the
c ur rent year was pr e di c te d by
Mr John Gratwicb, chairman, ait
the annual meeting pf Empire
Stores (Bradford).

He said: “In my annual state-
ment Which was prepared six
weeks ago, I re fer red to a sttgbt
□pturn in soles over the preced-
ing few weeks. Over the past
month, however, we have
reverted tv the pattern which
prevailed throughout last year
when sales values showed no
improvement over the previous
year.

“ This means that volumes are
still naming a little betow last
year’s level and it is imlikely that
we shall see any significant up-
turn during the reminder of the
first half-year.

“ As we are very dependent on
achieving higher sales -volumes to
cover the inflationary effect on
operating costs, it is inevitable
that the outcome for the first
half-year will be most unsatisfac-
tory and that we be report-
ing a loss at that stage.

“However, we anticipate that
the second half-year, which
always benefits from tee seasonal
trading pattern, will show a more
satisfactory positron and teat for
the full year we shall be report-
ing an overall profit, albeit below
tee level attained last year.”

Referring to the bid from
Great Universal Stores, the
chairman said the board regret
the decision of the Secretary of
State for Trade to refer tee offer '
to tee Monopolies Commission
as it extended tee period of
uncertainty and would involve
considerable time and effort by
senior management.

Despite the belief of the
boards of both companies that
the proposed merger would be
m the public interest, the com-
mission mi ght decide otherwise.

One of tee major benefits that
would have arisen from the
merger was access to GUS
credit control systems, Mr
Gratwick said.

This would have yielded a
s i gn i ficant improvement in the
control of bad debts which
during the recession have had
such a detrimental effect on the
profitability of the business.

In view of the uncertainty as
to the outcome of the Mono-
-poiies. Commission Investigation,
the. board was having to assume
that tee company might. have to
solve this serious problem with-
out outside assistance. In the
short term any action taken to
this end could affect the growth
in agency strength, but it would
provide a sounder base upon
which to build in future years.

The annual meeting of London
and Continental Advertising
Holdings w* told by tee chair- -
man that the level of business in
the first four months of the
current financial year was well
ahead of that for the same period
last year. The value of the com-
pany's forward sales contracts
now exceeded £L5m.

ASSOCIATE DEAL
Charlton Seal Dimmock and
Co. as associates of Braid Group,
have bought on behalf of the
president of the company, who
is not a director, 30,000 ordinary
shares at 51p.

INCREASED INTEREST eoats
and a redaction in associates
earnings have coirtributed to a
f?.lm shortfall In first-half pre-
tax profits of Marley, tee maker
Of products for the bulling trade.

For tee half year to April 30
1982, profits before tax fell from
£3 .26m to £1.16m, after interest
payments of £7.63m (£6B5m)
and a share of associates profits
of £15,000 (£852,000).

At the trading level, profits
were slightly ahead at £8.77m.
compared with £8.46m, of which
£4.09m (£4.43 m) related to over-
seas operations. Group sales for
tee period rose from £1 6622m
to £184.73m.

- With tax taking £2 .59m,
against £3J.9m, tee group made
a net loss of £1.44m, compared
with a modest profit of £77,000
last time. Minority Interests
accounted for £84,000 (£263,000).
and stated loss per 25p share
increased from -Dip to OBp.

The net interim dividend how-
ever is unchanged at lp per share
— last year, the total payment

was 23Sp pa taxable profit pi
£L5.1m-

The directors say positive
steps are being taken to reduce
-the amount of capital employed
throughout the busmess, both in
tee UK and overseas. "

The reduction in associates’
profits reflected a severe down-
turn in profitability of the
French concrete roof tee business
and as exchange loss of aroned
£0-5m in the* Smith American

companies.

In the period under Preview;
tee severe winter throughout
the North ern Hemisphere
inevitably affected most of the
group’s trading activities and
substantial losses were incurred
during December and . January.

An impr ov em ent since teen
has been encouraging, but there
is as yet no hard evidence of a
material recovery in. tile markets
in winch the group operates.
This is particularly so in North
America where Ingrid, maker of
plastic- consumer products,
despite successfully overcoming
its management problems, again

incurred a greater loss than
expected, as did tee .Canadian
subsidiary.

Marley intends tti change its
year end from October 31 to
December 31, since this is now,
seen' to* be "a date mere appro-
priate to tee needs of the
business. Hie change will take
effect this year and tee 14
months* profit figures will
probably be announced, int edriy
March, 1983. These results -win
be accompanied by an unaudited
trading statement for the: 12
months to October 31, 1982. ’

In enrrent cost terms, there
was a first-half pre-tax deficit pf
£L9m (£95,000)4

• comment

The outlook tor Mariey*s profit-
ability was labelled " very excit-
ing indeed” by tee chairman
only tour mantes ago. In t he
event, interest payments and
rongdi winter weateer dissipated
that excitement Income gearing
has combed to 87 per cent from
71 per cent last year, as borrow-
ings have climbed to more than

HOOhl The group is. now pledged '
to significantly " reducing this l
mountain off debt. Sale and lease* ;
backs are sure to be of this
prognarumev hart any factor a
shop and investment Which 4c
not providing an adequate
return on capital is now under
the threat of the knife. Marieyb
move into America was badly .
timed, what with, lofty interest
rates and record Ugh snows teat .
winter. But tee six mantes ' :
period just reported iacSudds aft -
tee bad effects of winter ana '
there is good reason, to expect
another strong improvemen t ■ to ~
tee second . half. In .the UK -
trading profits improved, with -
strong gpins in flooring, vehicle .
leasing and tee elimnnatibn of
losses in transport activities.-
DIY group is responaMefor bdt
of tee interian increase ia sales,
and, despite an interim loss, Jt
is expected to come good in tee
f nW year. The uncovered divi-
dend refleofas Marley ’s confidence
hi a good second half. The shares:
lost lp yesterday and at 43p the 1
yield is 7.7 per cent

Lake and Elliot plunges to £445,000 loss

IN THE first half to March 31
1982 steel castings manufacturer
Lake and Elliot slumped to
taxable losses of £445,000 com-
pared with profits of £306,000
for tee previous first half: the
Six months to January 31 1981.
Sales slipped from £L3.05m to
£L2m.

However, the interim dividend
is being maintained at lp net per
25p share. For the last account-
ing year, the 14 months to
September 30 1981 the* group
made a total payment of 2£p
from pre-tax profits of £917,000.

.The directors say that
although market conditions re-
main extremely difficult through-
out the group, the current level
of orders on hand is encouraging
and provided this level of intake
continues, the group should be

City of Dublin
Bank little
changed midway

in profit by the year end, albeit
at a much reduced level to that
achieved last time.

In the steel foundry industry,
over capacity continues and
margins are under severe pres-
sure. The valve division has had
a difficult first half but the order
position is now improving, they,
say.

Exports increased, -but in the .
home markets problems were ex-
perienced. This applied to all
subsidiaries with the exception
of the fastenings company, where
improved demand and profit-
ability enabled it to ex pand
facilities.

The U.S. subsidiary Hindle-
Hamer Inc, acquired last year,
performed well and made a
welcome and encouraging con-
tribution, the directors add.

The pre-tax losses were struck
after reduced interest costs of
£211,000 (£230,000), and there
-was again no tax charge.

• comment

At Lake and Elliot's annual
meeting In February, “a step
forward daring the current
year” was anticipated. In the
'light of these figures, which the
company calls “very disappoint-
ing,” it looks like a case of one
step forward and two steps
bade. The unforeseen factor was
simply that a recovery in the . in-
dustrial base has' not
materialised. The steel foundries
experienced a very, thin order
book, and the outlook is . hardly
encouraging industry-wide. The
1981 .U.S. acquisition' TTlndle-

Hamer Is washing its face of
finance charges, and the conj-
pany is negotiating a further
acquisition in the hunt for profit
margins, which have been fall-
ing even as costs are being cat
t j»ira and Elliot’s minimum
target of a 10 per cent return on
sales, which has not been .
achieved ridee 1976, is still' just
a target. The company’s joint
venture in Singapore, which
started in October, seems to have
run into problems, albeit not
costly, azxd Lake is now- looking
for a new partner. . At a cost of
£100,000 the interim: has been
maintained, but even; with full
years, profits predicted,’ the . final
is not certain to be maintained.
At 42p, down 8p, the yield over
the last 12 months is about ?i
per cent.-

First results from Telfos

THE FIRST results of Telfos and this later changed its same ’ Since tee end of tee year,
Holdings sh ow th at for the 11- to Telfos Holdings. Telfos being loss-making activities have been
day period from December 21 a brand name of one of Gifford's curtailed and certain peripheral

19S2 nre^tax at ctitv of 1981 to December 31 1981, the products.

i£42o,000. Tax took more at ’ . . Gifford

AAA ■ if i " i a TP174 AAA ^ ^ **"“ * t

■oducts. businesses told. Following the

’ “SL °J2.

B436.000. lil W ™ * ff’noto • Clifford group for tbo period

In78,000, agaipst If 174,000. “ TcI fif became tbe balding M® 81 *°

The interim dividend is main- company of the Charles Clifford ® pr ?’ 1 ??n- 05S The directors say that trading

tained at 0^75p net per share. Industries group on December a* conditions are still depressed,

Lato year’s tote] of 2B875p was 31 last year, following a scheme However, management

paid on pretax profit of I£L04m. of arrangement Last November ^ ap . ™ ade a Profit of £146.000, for four m onths of 1982

FiTSt the lo^- show tee group to have traded

were ^ed » 2.02P, do™ frem ^lee C,M^d to eU

stated as 2.02p, down from making Qiacles iQBJrt was to at a.net profit after all charges.

2-5 lp. undergo a major reorganisation aiter m cnaTges ’ was They state that in its slimmed

Mr Thomas Kemy, ebadnuau, of Its corporate structure. Trading profits of Telfos for down state; tee new group is. tot

says profits have been struck involving a rights issue to raise the 11-day period were £6,000. to take advantage of the

afler providing tor an estimate £L7m net The share of associate's prints hoped for upturn in business,

of the second bank levy in addd- A new holding company, was £1,000, but interest took They believe tee company wifi

of the second bank lev; in addi-
tion to no rm al taxes.

Cato balances plus g overn me nt
stock, together exceeding I£25m,
are well above the company's
requirements. Deposits now

Ferrous Protection, was formed £5,000.

prosper in future years.

RESULTS AND ACCOUNTS IN BRIEF

exceed I£70m. aeninvt IPSm af HUBtKis aulaku (builders' for 19St reported May 5. SbarahoWors" (£5.S7m).

mercbentJ-Besuto for 1981 alrndy funds £121. 3?m (£B8^5m). Hxed assets £14,000 i

September 30, 1981, « goad indi-
cator of the company's growth, he f£3.3m). net currant assets £2-72/71 E70J6m (£S4 64m). Oecrmrse in ten!
said. W. as««U £904^03 n«t borrowSnos £7 .16m (£3.41 m

Minoitiy fateretos took I£39,000 In working capit* 1 Increase). Group sales for three

(nil). A Drt Drefit Of I£206000 ^T’l 73 Chairman states months to March 31 1982 were ahead

was TTWHiA ti T ,t .iS T,o r r ,or th ®. fir8t months of those for comspondrng quarto r of

waswme <m the Srie Of 40 per of 1S82 Shows an increase of 6 per 1981.

cent Of tee company’s wholly- cen? over lest year. Meeting, 116 Pall GARHAR BOOTH (tenner and leather
owned subsidiary, Into Bank of Ma, ‘- sw - Jun ® 1®» ** ooon. manufacturer) — Results for year to

. Increase in hot liquid hinds
<£3.06m decrease); Masting.

knpwir. Shareholders'- funds £3.63m £73J3m . Net current mm Croydon, June 21, at noon.

S rrant 3M8ta JZ- 17 ™ (£S4.64m). Oecreese In tonl Tmnfiunwm -

£70J6rn (£S4.64«n). Decreese In toral
net borrowings (£3.41 m

Increase). Group sales for three

Commerce, to Qredit Commercial
de France.

GARNAR BOOTH (tanner and leather
manufacturer)— Results for year to

ro'XTON EOTATE (property develop-

ment end Shareholders' fund, £10^n (ffl.38m)

Results for 1981 reported Uav Rxad assets £7^4m f£3.79m) # . ne. . - . —

H°S swryssusprisas

(£7. 48m), eurre^ li«b“5S? 01 ^ »AKE VIEW IHVtSTMENT TRUSTS— .JjJJJJJ:

(£8. 4m). Decrease in Mtaa«aS R99Utv far SI 1982 :

£817.000 (E3-2m In reported April 28. Shareholders' funds L

22-34 By Piece. EC. June 22/^mJi' E79 - 41m («»338ni). Cufrent Meets ,d »2L

BSG (£1.66m) Including cash and

h0 ^- (wdu sow dapwfte £3.8Sm (£1.47m). Net current tZS* a ® M *« Sf?*?

n tnaing company)— fteauto for 1881 , assets £2.19rti (£ 543.000 llshilitiBs) .. R *? d essots . £15>J47H

NEW THROGMORTON TRUST— Nat
asset vefue per £1 of <m»taf loan stsdK
e« at June 1 1982. 312JBfe. - •*;

SILJENTTAGHT HOLDINGS (tads,
to*o*atory and furniture) — RsatBts .for
year to January 30 1892 and prospects
"•ported Asm* 28. Shamhcridors' funds
£18.34m (£14>63m) . Fixed aesMj

£16.88m (£iZ41mJ. Net current lai'siiw

fixed easels £7^4m f£3.79m). net (£2Jam). Bank teens -.£1

current assets £3.97ro (E5m). decrease
in working capital £662.000 (EB41 .000).

■^r r •

Marsh &l McLen nan
enterprise

AN INFORMATION MEETING
will be held at 3pm on Thursday
10th June, 1982, in the Painters'
Hall, Little Trinity Lane,

London, EG4. The Chairman of
the Board and other members of
management will summarise the
proceedings of the annual

meeting of stockholders of
Marsh & McLennan Companies,
Inc., which was held in New
York on 19th May, 1982, and
respond to questions.
Stockholders and other

interested persons are cor dially
invited to attend.

M arsh & ^ ;

Mcl ennan DOWrm 9

Copies of Marsh & McLennan Annual Report for 1981
andpraxy stat ement may be obtained on application to
The Secretory,. CT Bowing &Ca. Limited:

The Bawling Budding, TciwerPldce, London EC3P 3BE
(Teh 01-283 3100 ext 5W).

INTBINATIONAL

~r - £4-43m (£7 .66m) Including cash and
(mfuKriU daposito £3A5m (£1.47m). Net currant

hohQna daposito £3 .85m (£1.47m). Net current

for WW assets £2.194. (£BS3,oto liabilities},
fixml /rif??' , Groo ° Chelrown jays expansion of Far Eastern

SKw TS* aaj? part of * B (up from 30 per

tewa Vnd ~ bank wm to 41 per cent in the year) may

gtSffsai-i^ssrajEi: ss&jsr— — 7 H —- «=• j ™ “-

ahmingham. June 28. oam

COATS PATOISS (twtWe imnufa>. MARSHAil'S UMVBISAL (dteribu-
twer) — Rasuhs for Itol and omainon P* 01 , ln0t01, vehicle accessories and
owned May 13. Shareho*doiv!i«ds papar ^ owd for 1981

£324<n (£238. 7m): fund aeseta £1Btoi *® ported May 7. S+ramhoi dors’ funds
< glT1 .3wi): net current assets. £2MS.1m 34,11 (£11. 18m). Fixed sseeta £9J29ra

(£2Sm). Daorees* in net liquid famfe (£1L55m). Net current assets £6J38m

BTAn (teore«w £18m). Mtotog: r

Gtesgow. June 18, noon.

COSTAIN GROUP (conatructlon and Wpmma

development)— Results for 1981 end
prospects already known. Group
shareholders' funds £177 ,89m
(£124. 72m). Long-term loans £21 .22m
(£r..67m) r short-term loans £20^3m
(£&96<n). Long-term assets £l78^7m
(£T17.96 td) . Nat current assets £74J6m
f£95.45m). Net Inflow of funds
£1 0.44m (£31 .28m outflow). Meeting, -
Pfalsserers Hall, EC, June 72. noon.

mSKINE HOUSE INVESTMBVTS -
(security eervtees end buresu de
rienflo}— RMto for year to Mencfi 31
1982. reported Ju ne 1. SbenfaMere' ■ -
funds £798,644 ( BR2 36) . Current '
assess £896^79 (Cl .04m). Cuvrent
litM Ww and pnwtsfons £I.TTvn--
(£2.06ro), including bank owwJref*
sod foane (ssoured) £B2B,Cw
(£890,160). tacrease in net fiquid
funde £801.060 (£1^4m decrease). • -

Chainnan says curanj trading augurs
wall for this year. Meeting: IMnchretor
House, EC, June 24, noon.

JOHN FOUQES HS=0 (engineering)—

Rasults for 1981 already known. -Group
shareholders' funds £1 9.06m (£21 .lm).

Loans £305.000 (£328.000). Fixed assets
£10.34m (EllJSm). Net currant assets
£8.49m (£9. 83m). Net bank borrowings
£5.11m (E3.0Tm)': Working uptnl

decreased £1.58m (£0.89m), Chelrman
soys results so far for 1982 are batter
than in corresponding months or 1981.

Meeting. Edgbeston. Birmingham. -June
16. « noon.

FOSECO MlNSEP (metallurgy, build-
ntg products and chemlcaJa) — Results

(£19.91 m). Meeting, Winchoator Jiooaa,
EC, June 16, at noon. J.

8UNUQ HT SERV ICE GROUP (Wundry
.f*" 0 *)— 1 Heeuka for 1991

-Ssr

(Cl^0&n). Current Mrifftle. fflSS
(0.99m). Incrasw In net fiqufct fun£
tmpOQ (£485.000 decrease)?

^sdlets wMMwy profit ‘ kacrea M
£■/ gr. Meeaing: London Waetoury,
Bond Street June -18, noon,

□

Banco Cafetero SA

US$30,000,000

Guaranteed Floating Rate
Certificates of DeposS; due 1984
Fortee six months

3rd June, 1982 to3rd December, 1982
In accordance with the provisionsof tee Certificates
notice is hereby given thatthe rate of interest has *
been fixed at 14i per cent per anniim, and that : -
the interest payable on the relevant interest
• payment date. 3rd December, 1982 against each
Certificate will b» US $37,807^9.

Agent Bank

. Wells Fargo Limited .

-1-. ..

• « r i ti-i'rt

27

Financial Times Thursday June 3 1982. ;

sid Markets

Weston;

INTERNATIONAL CO MP ANDES and FINAN CE

inf

16 of - *

(SFa-S ^

*55

*** vafci^)>

prices hit by
issue

. v .;bt our.&romarkets star?"..-

EURODOLLAR. boaid prices ;Chugai Pharmaceutical came is seeking to raise SwFr 100m
own yesterday as to the market with a.$4€ml4- with a seven-year private place-

MPtnri ‘ .. uvi.‘ - - ‘ l ‘ i • r _

were

react ® d to Canada^ year convertible issue', with an meut bearing a coupon of 61
F/aibn mre-year issne jjjg indicated ?oupoh of 7k per cent per cent priced at 99j. Lead
WKliagfflt weakness of the U.S.- and' final. pricing scheduled; for manager is Credit Suisse,
ooM naarfe et. .. ■ ■. ._ _ : . \ JuneiL .Lead managers -are • Fuso Pharmaceutical, another
^i^-jwoatsiw^. naped posh Nomura International, ■ SG War- Japanese drugs company, issued
m s - , bur S ■«*-• Sumitomo. Finance ■ a SwFr 25m 53-year convertible

mj ann ed V * P®w*t fallowing Interna UppaL private pi a cement with an

4mf Q between | joint G

came

to

See Lex

Germany, Oster- indicated coupon of 61 per cent;

?TOUp i. Pn .
“Scant; v •
a of debt Zr^t
* SU1 * tob-S'K

but aJ? r, n't
d mresajjjy f-&.

ii» previous day. . . ... . .. reichische Korrtrollbank, AuS-

Maoes-. by Bayer, the tria’s -.export credit bank, . is
West <iermw^aaed chemicals raising DM 75m with a seven-
gro ^ , » , . 9 1U S^- W»rina- -year private placement carrying

ceuncal, the Japanese group, a coupon of 9 per cent priced __

added to toe weight of new at par. Lead manager is West coupon on its CS3Gm 81-year

paper m-the EurodoHar market. LB. Last, week OKB came to issue increased by Wood

' Bayer came to the - market- - the Canadian, dollar sector with. Gundy, the lead manager, from

with a 5150m five-year 1 bonds a C$€3ia six-year 161 ctn^on 17 'per cent to 171 per cent:

note at par. ”

Lead manager is Swiss Bank
Corporation. Overall the Swiss
market was unchanged.

Gaz Metropotitain, the Can-
adian utility, has had the

>n capi ta i i* ***

** k&Hl*

ito

Atneri^’ 6 ' ^
*«fe loft?’*

P™*!s ia&S*

j* **

n .■tr^csporT^l
JP is ve$pou B K^
aterim i ncre ^wt

& le , » i-tShV

s.fe'a

bearing an indicated coupon' of
101 per oejJ± through Deutsche
Bank. ■ Bach 51.000 bond pro-
vides 19 warrants enticing the
purchaser to one. chare Vat
DM 121. The shares are cusp-
rentiy tradmg at DM 120. The
issue suggests a yield of 144
percent

.The German market was
weaker by; 'about $ point in
quiet trading, with .‘dealers
blaming the fall on the weaker
overnight market in Nerw York,
ibe strength, of the dollar and

the volume of new paper
••-. In the Swiss market, -Zeros

Wood Gundy said the move
reflected the Impact of the
jumbo Canadian 'Government
issue on the market. Institute
Mobiliare Italiano (IMT) is rais-
ing. ECU 40ni with a seven-year
issue carrying a coupon of 14
per cent led by Credit Lyonnais
and. Kredietbank International.

Pabst goes
for Olympia
as brewing
bids spread

By pavid. LasceUes in New York

Chase liquidates

Drysdale

positions

•• : By bin* Rranltfurt Staff

9 loss

is was hi nr j u .-y,.
charter. luA \be i-
nccotiauns a
cm in Lie hue; w
whic!: h^*,e bea ^
as vptt*.e are
Qd El

a 10 p».*r a-r.: rww;

riiich

Chase Manhattan Bazik .. of
New York said it - had been
liquidating the ; Treasury debt
issues it assumed from Drysdale
Government Securities on May
19. ... -

It confirmed that it b^an
liquidating these ..securities
last week, but did not specify
which securities were Involved,
It is estimated that Drysdale
had established about $4bn in
short positions and -about 52ha
in long positions when it
defaulted on several .hundred,
million dollars of interest
payments..

. Since May 19, Chase has been
attempting to unravel the com-
plex transactions associated
with the Drysdale affair, many
of. which were concentrated is
the market for repurchase
agreements. . . c'

IOIC boosted by end to
Iran hostages crisis

BY PAUL- TAYLOR

THE RESOLUTION of the Iran but had been reduced to a book
hostages crisis helped the Iran entry of 513m by the beginning
Overseas Investment Corpora- of last year. At’ the same time,
Hon (IOIC), tiie UK-i>ased con- the bank, which was heavily
sprtium bank, 50 per cent owned involved, in syndicated loans to
by Iranian' banks, to lift its pre- Iran before the crisis, had
tax profit by 7.5' r per . cent -to reduced its exposure there to

£lJ27m (52.3m) in the year to
September 1981. . .

The bank was caught up in
tbe- : 'UJ5. decision to- freeze
Iranian- assets .following the
seizure of the US. hostages in
November 1979. although it is
50 -per cent, owned by .non-
IzamaiL . hanks ; . including
Barclays Bank Imernatiohal and
Midland Bank, which each have

Wi

6.25 per com stakes.

. It changed its name last year
from the .Iran Overseas Invest-
ment : Batik after becoming a
Jkensed deposit taker.

The bank's total deposits in
ttie U.S. were 538m at one point.

just $347,000 by the end of Sep-
tember 1981 from about 542m
in 1980. The bank was also
heavily involved as agent for a
number of other syndicated
loans to Iran.

After tax. net profit for the
year was £979.582, an increase
of £420,450 over the previous
year and the retention of net
profits boosted., shareholders’
funds by 8.7 per cent to £12. 27m.

The bank’s total assets in-
creased from £104.7m to £112m
despite ; a fall in the size of the
syndicated loan portfolio from
$100m to 577m .

siRi'P "P7-. i: ajjJ-
, The ut3J2j;~
in Srnfzp^n. «:

1 Uv'OWr, wr.t :r-.

) crot-^K,. l y * :

sd Laki? ^ ?fiv
*• partner A- 2 -J
iUl- in^'rsra i
&d. har v.i t:
jS'.s to;;

'ftC'.n to Or
Jc’.vr 8p. ire •
12 'j> 2k;

FT INTERNATIONAL BOND SERVICE

• The list shows the 200 latest inteaiatjotial bond 'issues for which an adequate secondary market
exists. For further details o£ these-.-or other bonds sec the complete list of Eurobond, prices which

wiR be published next on Wednesday June 1& v

Closing 'prices on June 2

VJ.S. DOLLAR
STRAIGHTS

Changv on- '

- Indatf'-BM' OiNr.itoy vmlr tiWd

amA • re mm tso ieft ii»», -.o^ . ..

AifUX -let- FUL IBS 0Z 75

A max O/S Fin. ttt 58
APS' Rn. Co. T6V80 ...

ATT 89

Bakar Int. Fin.- 0.0 92.
BHP Finance 89 ...
Bk. A mar. NT SA 1Z S7
Bk. Montrul M** 87 ...
Bom. Indo Suae 15 89

22S

150

20Q

100

100

ZOO

the or.'S

■s.

5UC 5: •'

wiucr.

r : ' -.5?

Burroughs InU 1ft 88
Canada ir 15%' 87 7 ...h.

50

160

f.w*s

Canadian . Pac: ■ 14% 92

75

Carolina Pow*r 16% 89

60

MS-

CIBC 16 87

100

F-i!i

Cittoorp O/S 15 84/92

100

jru_r-' a':

Citicorp O/S 15% 85/97

126

DNA 1ft 97 •

75

Con. Illinois '15% .80 ...

MO

Duke Pwr O/S 15% 88

60

Dupont. O/S Cap. 0.0 90

300

6CSC 1ft 87

bO

RI3 r.2^"CC\ ’

150

50

rs 1

Sa -»

prori: ^

tatc th.‘ -- •" r'.
to. c f r: ' j - :

aticjr --

>r ur'--” - 7 -
.tow f*"-*-
3 future ywfr

j'? -

-xyr-

GMT

’Sts-

E1B 15*» 89
EKapnnfinana 14** 89-
Gen. Eleci Cmtjir 0.0 9£ AOO
Gait. -.Else. Cradit.0.0 93 400
Ganyr OH. Int. 14. 89 ...

§ MAC. 0/S Rn. Ifi 88
MAC O/S. 15^ 85/87
GMAC O/S Fin. 15 88
GMAC O/S Fin. 15 87
GiHf Canada Ltd W, 92

Gulf Oil ,14V 94

Gull Oil Rn. 0.0 32 ...

Gulf States O/S t« 90
Int-Am. Dw. Bk. 15^ 87
Japan Dev, Bk. 15*i 87
New Brunswick 16*a 88
Ontario Hydro 14V 89...

Pm. Gaa & ET...15L 89
PS*'. Ges & a. 1S*« 89
J. C. Penney Gl. 0.0 94
PhIHips Petrol 14 89 ....

8'J. BynWs. O/S 0.0 «
Saskatchewan IB 89 ....

Shell Canada T4S 32 —

Spain. 15*4 87 —

Statefbratag 15!, 87 ....

Swed. £*p- ' Cr. 15*» 89
Swed. Exp. Cr. ML 90
Svmd: Exp, Or. 0.0 94
Union Carbide 14*, 89
Wens. Fargo f. F. - 15.87
World Bank T5V SB. ...
WoHd'Benk 14t, 87

T03 1 , -m> t -O** - V, 15Jj3
,75 97 974 t-04 -1»»144B

7& .102. WZ4 -0V.-V.1S.6Z -
400 MBS H»S --0S —OS 13.86 .
ta*S ZJK -0*. -0S.14A0
SSS 98\ —OS —OS 15.10
32?* S3S -OS -0»i 14.05
.- .38S • S8\ -OS -OS I4ai
S8S 9BS —OS -9SK3J ;
10OS WOS -OS -OS 14^8

* 102S TOSS —OS —IS W.88

TOT WTS -OV— OS 15-04

STS 9«S -IV —IV 75.05
103V UBS -OVrlVIfiJSS...
101*4 10ZS -OS -0V 1582
TOO 0 , 100S -OS -OS 14.88
101S 101 S -OS.-DV T4-70
W0>4 WOS -OS —0S.-lfi.75
102 102V -OS —OS 15:i4'
7O1ST02 -OS —IS 15.04
3SS 38 -QS-0SMJS1
9BS 9BS -OV -.OS14J87.
w* ioi mbs -os 15.27.:.
97S 98S -OS -OS 15.0 0 .,
■28 2BS ^OS 7-1S1331
24S 2SS -OS -1 13.77-
9SS S8S -OS - IS

102 102V -OS —OS 1S.32

09 99V -0V -OS 15.53

99 99V ' 0 +OS 15.17

9BS 98*4 -OS -0*4 15.44
99V WO -OS -1V-14.77 ■

. BBS 88V -OS -IS 14,48
27S -Z7S “OS -IV 14.10
S9S 100S -OS -IS 1887
99S 99** -OS -IS 15.16
102V 103S -«S -A 1481
W3S 104V -OS “IS t5jEl : -
Id 101V —OS -UV 14.43

103 103V -OS -1 14«
102S 102*. -OS -IS M-83 ..

2tS -22V O -OSWJBft
97 97V 0 -OS 14.84

2GS Z7S — 1 -1*4 14.43
103S TOS -OS -OS 1587...
98*. 98S -DS -OS M.89
99S 99*. — 0VT0V15A2 -
100 100S -OS -OS 15-58
9RS 99S-PS-1. 1ST45 -
95*. -9S*. *?0*4 r-OS 15.82
21*4 Z1S +0V —OS -13,85'
100 100V “OS -OS 14^7
100S TOTS -OS. -OS- 14-54 '

• 99V 10OS —OS —IS 1516

■ 97 97V -OS -IS 154)6 .-f

OTHEB STRAIGHTS ■ 1
-Cjinl Pm. S. ieS 89’CS
TJrd.^pncier* 17V 88 CS
Hudson NT 17 89 CS,:.
Nation* Fin. 17S 87 CS
Q. Hyd/IBV 89 (Mr) C»
Q. Hyd. 18V B9 {My) CS
Simpson* IBS 88^C$ ...
U: BV- Nwy. 8V 90 EUA
Amro Bank 10 87 ft . .

1 Bk. Mam & H-. -10 87JI
Eurofirrw 10*» 88 R — —
Ptiil. Lamps 10V 87 FI...

' ' Rabobank 12 86 Ff ....„
World Bank 10 87 FI

SO
30
40
' 50’
SO
50
40
18
150
75
50
100
50
ISO

OKB. 14 SB FFc. -400

125

ito

we

125
100
100
.175
300
60
55
50
75
WO
BO
- .45
350
200
400
12S
125'
WO
50
WO
100
200
150
75
2SO
GOO

Avetage prion. change*... On day -DS on «eek -0*.

yr

ST i

, Afl*

DEUTSCHE MARK
STRAIGHTS

. Change cn

issued Wd Offer day weak Yield

Asian . Dew. Bank BV 92

Australia 9S 91

Aiiatrella 9V 91 ;

Canada. 8V to ■'••«

Comp. Tel. Eap. 10V 92

160

300

200

aoo

100

!Un

T Stn

Denmark '10 .88
Denmark 10V 9Z

EOF -9V 92

EEC 10V93. -

EEC 9V94

E1B 9S 88

TOO
WO
100
100
280
- to

fhi-Am. Dw. "Bk, 9 82
Ifpfaitd JOS 8fi

Mexico .1188
Nscnl. Financier* 11 90

-98S 99*, -OS 0 9^2

1d2S 103S -0V .-OS , 8j84
W2», 103S -0V “OS 8.81
- 100V.W1 0 O 8.35

101V W2 +0*. +0V 10-19
100S RMS -OS -OS 9-69
10TS102S .0 +DV.9.78
101V 101*. . 0 -OS 9.<4
W2S 103S -0*0. —OS 9.68
102S1D3S +OV +0*i . 9 32

T01S102 1 , -0*, -ov'-ajs

99V 99S O R 9.07

• wiV-ioas -os +os a-53
IWVfOIV -OV -OV W',75
99V 99V -OV }. «■»; '
10&SW4S —os.— os oaf
'itnv ws -o>. -os ?4o

104V105S+OS o. 9*2
103S 104S 8 +0V- 9.57

• a9S 100S — OS -0 -10*2'
W2S 103V -OS -OS, 9.45

-wo-. toivkks -OV .*BV. sja.
250 104V 105V -0V +OV 9.18

150

100

100

ISO

100

TW.

150

180

TOO

50

Nat. West. 9S 92

OKB 9S to

"Quebec 10V 92- .........

Quebec Hydro. 10V 91—

Rtnto-10 32 ...... -I.. ..-

Tausra autobahn 9S 34
Wdrid-Bank J9V 99 ■■■'■-■■'

Average price change* .. On day --0V on week -OV

eueicc FRANC 1_ . . Chinyi OH

cTOAtGHTS Issued Bid :©ffw-day week YWd

SSm Transport TV » SO W3V1©?r: O' +0V 896

Aufielss 7\ 92 — 80

Australia 0V 94 WO

CS®. Nat. I’Eneroie T 92- WO
CF&MaxIco, 8V 92 ■..»£ »

Corop. Denmark 8S 92 75

Crown ZeJfibflh. 6V 32: TOD
Denmark 7S 91 • ».««»' TOO

E1R;7V 92 ’2?

Elat; da France 7 92' ...; 100
ENEL 8 92 — ” ' J2
Rrst City Rn. 8V 92... »

Kommunlane- 7V 62 »

Manitoba 7 92 MO

Mitsui OSK BV 92 W
National Pwr.*C®.. A ffi . JO
Nippon T. and T. 6S 92 100
OKB 7V 92 MO

on. Doneukrpft 7 92-- .100
OB. Posts Par 7V 92,. ™

a r T* w w,**;-. «k.««

99 99V +QV +0V 7.88

103V R»V 0:,+DV 8^8
W1V 101V -OV ’MO ' -
S9V WV -^OVr-OV «J4.
104V 109* -OV -W»S -7.B.;
102% 102V 0 \« 6-41-
102V 102V O' ¥,0V -6',86
103V ItoV 0.+OV8.72,
■■10BVHfeV-.4Wi‘-W- 02»*-
102 wzy-ov.TOv ^.;,-

103V 10ft — OV -OV 7.74 -
101 '101V ,0 -WIS 7.09
W6V 10BV +0S ,+OV 9Ai;
WO*. WfV -OVr-HIV .^ah H

103V 103V o +0V 7A«
103V 104 +0V +0S iAU
104S WV ' o +0V -W1
W2V 102V +0V--0V fiffiz
loss W3V +5% +0S jpo
704 1O4V^0V+1V; ;

“ Change on

veii enuisins Issued-, hid HP day week Yield

IS. s SJ. , ^ re 8<.|i,..v^

Int.VAmer. ,6 bwj Wr^l-- . IB

Japan AirHnas TV 87"». 3 .• * < 11101 , — ni 1 ■ can''

New Zealand 8S 87 ... • 15 - »V 10ft ft 1

World Seek ft.92 ---■ " » ^ 5? m \U*iT-OV

Average price changes.. On day -OS <m

Solway ot C 14V Bfi.FFr

Acane 14 B E :...

Beneficial 14*. 90 E (D)

BNP 13V 91 E . — :

CECA 13V -88 E

Fie. Ex-'Crad. 13V 88 €
Gan. Hec. Co. 12V 89 E
Hiram 1 Walker 1ft 85 E
.Priveibaafcen 1ft 88 E
Quebeo 15V 87
- Reed (Nd) NVilBV 89 E
Royal Thisteo 14 to f...
SOR France 15V 92 C~
-Sieed. Ca. Cr: 13V to E
Eurcffma 10V 87 LuaFr
EI8 9V 88 Luxfr — ;...:

Change on

issued. -Bid -Offer day week/Yield
W‘ 99V O ~0VW93
9100 100V O -OV 17.03
199V 100V 0 0 16.97

t» .. 0 0 18.17

199V 100 0 -OV 16.61

199 99V +0V +0V 16.88

197% B7V O -OV 17B7
•89V 90V 0 0 Ml. 47

S9V-99V 0: -ft 10.16
. 9ft 99V -ft -ft 10.29
' WftlOIV -ft -ft 10.26
10ft 101V -ft -0% 9.97
TOSV 10ft +ft 0 BM
9ft » — OV -ft 1033
92V 93V -ft -OV 16.74
91V 92V -ft -OV 17.80
9ft 9ft 0 0 1BJ7

8ft 89V 0 -f ft 16.64

93V »4V 0 +0V14B1
94% 95V +ft +ft 14.67
9ft 95V +OV +0V 15.43
9ft 93V +ft +0V 14.08
97V 98S +ft +ft 14-88
94V 96V . O +OV15B1
101V10IZV 0 0 . 14.81

10ft 1D3S 0 + ft 15.84
97% 98*. 0 +0V14B3

99V WOV -ft +ft 15.47
9?V 98V “ft +0V14A6
95V 96V- 0 -ft 11 AO
92V «ft -ft -ft 11.41

200

20

20

15

20

15

50

25

12

35

.25

12

30

20

500

600

PABST BREWING of Mil-
waukee responded to an
unwelcome takeover bid by
Helleman . . yesterday by
hitting the acquisition trail
itself and making a bid for.
Olympia Brewing.

- Pabst, the fourth largest
brewer In the US., offered
to buy 49 per eent of Olyrn*
pia for about $36m, and then
merge to a subsequent trans-
action. Olympia, based in
Washington state, ranks
number seven in the UJS-
brewing league- and is a
major force in the U-S. north-
west. It said it would review
Pabst’s offer and make a
statement today.

Hr WiUiam Smith, Pabsfs
president, said. “ The combina-
tion of Pabst and Olympia.
Brewing, we. are confident,
wDl be a powerful competitive
force in the American brew-
ing industry.” Be said Pabst
was going ahead with the bid
despite toe offer from Heile-
man because ft, had been
advised by its lawyers that a
Pahst-Heileman merger could
run into anti-trust problems -
with toe Justice Department.

Pabst, Which made its first
loss in 1981, Is already on
the receiving end of an offer
from a Philadelphia brewer.
C. Schmidt and Sons. In
fighting the bid, it said that
it would not oppose an offer
of $25 a share in cash.

Helleman. the sixth largest
U.S. brewer, made a $197m
bid for Pabst at toe end of last
week as part of its long-run-
ning attempt to expand by
acquisition. It earlier tried
to merge with Jos Schlitz hut
failed after the Justice Depart-
ment raised objections.

. The extraordinarily complex
web of bids and counter-bids
in which major U.S. brewers
have now entangled them-
selves has come about as small
aggressive brewers try to
acquire large brewers wbo
have lost their vitality.

Sales rise
for Dutch
chemicals

By Walter Ellis in Amsterdam

FLOATING RATE

NOTES . Spread Bid Offer C.dts C.cpn C-yld

A Iliad Jrtabft 92 OV 9ft 9ft 15/10 16-89 15 JS

ft

ft

ft

ft

ft

ft

OV

OV

ft

ft

Bank of Momma! 5V 91
Bk. el Tokyo 5V 91 fD)

• Bk. Nova -Scotia ft 93

-BFCC ft 88

BFCE 5V 87

Calsaa Nat. Tala. 5V 90

CCCE 5V 2002

Co-Ban EarofirvSV 91...

' Cradit Agricofo SV 97...

" Credit Lyonnaia ft-87...

Credit Hal. 5V 94 : tft

Danmark, Kngdm. of 92 OV
. Den Notake Cred. 5% 93 OV

Indonesia ft .92 ft

IndL Bank Japan ft 88 ft
-t Kanaiffla. Osaka ft 92' ft ’
rUoyda Eorofin- BV 93 ... SO 1 *

- - Long Jarm Cred. ft 82 ft
•• J. P.. Morgan ft 97..:::. 5ft.

. Nar. Wwt. Fin. ft 91— Sft

; New Zealand ft 87 • 0V

Nippon' Credit 5V 90 ...

. Offshore »l4i»iBS 5V 91

PKbankon S 91

. Scotland- Int- 5V 92

Sac. Pacific 5V .91

, Socleta. Ganarela ft 95
, Soudan! .Chart, ft 91
■J Sumitomo Fin. ft 88 ...

Sereden 5V 89 ;

Toronto Domm'-n 5V 92

15^8

13.40

15.20

15.08

18J3

15B3

ft

ft

OV

ft

ft

ft

ft

ft

ft

ft

Avenge. price changes.

Sft 99V 29/10- 15*.

9ft 9ft 10/6 13V
Sft Sft 29/10 1ft
. 99V Sft 28/10 15
9ft 99V 27/7 1ft
9ft- 99V 21/10 1ft
Sft 88*. 11/6 14*2 15.02
9SV 99V 14/10 16 18.10

9ft 9ft Z4/9 15A4 15J52
9ft 99*. 1/10 16 16.06

,9ft Oft 9/6 14.69 14J4
99% 99V 25/8 15A4 15^5
98 9ft 4/6 13 to 13to
•9ft Sft 29/17 14V 14.92

» 39V 22/11 1ft 14.01

. 9ft Sft 6/11 15JJ1 15 J7
99% 39V 29/10 17% 17J3

, 9ft ' 38*. 29/11 14V 1433

Sft 9ft 12/8 14% 14.79

9ft 99V1B/7 15.19 15 to
98V 99*. 7/10 1536 1B32
99*« 98V 10/8 16.06 16.14
Sft -9ft 2/6 13 13-13

99% 99% 17/6 1ft 14.47
98*. 99*i 23/9 1ft 15.51
98% Sft 24/11 15 15.06

9»*« 99V 1/8 1SJS1 16.39
3ft 9ft 18/11 1ft 15.01
Sft lOft 9/8 16 16.02

S 99V 26/8 1531 15.45
Sft Sft 1 1/8 16% 16-46

Oh day -0% on weak 0 •

SALES BY fte Dutch
chemical Industry ta 1981
rose. 'to FI 3341m ($12.88bn)
from FI 29.5bn In toe pre-
vious year. Exports accounted'
for Fl.3ft.8bn of the total, a
3 per cent Increase on . 1980.

The volume of Dutch-made
chemical products rose at
the same time by almost I per
cent, having fallen by 4 per
cent in 1980, The Associa-
tion of Dutch Chemical
Industries (YNQ), in its
quarterly review of progress
in the industry, notes that
this improvement still leaves
production below toe 1979
leveL

Expectations for 1982 are
not high, and much is said
to depend on -toe develop-
ment of raw material and
energy prices and the ability
of producers to adjust their
capacity.

- investments in 1981
totalled FI 1.6bn, slightly
more than in 1980 after
allowance is made for price
increases. The number of
workers employed in chemi-
cal production in Holland
remained at around 91,000.

• Nijverdai-Ten Cate, the
Dutch textile group, made a
small, undisclosed profit in
the first quarter of this year
and hopes to. achieve a posi-
tive ' result for 1982 as a
whole. Its operating profit for
the three - months - was
FI vL5m compared with
FI 2.9m, and sales were up
3 per eent at FI 141m.

In 1980, Ten Cate closed .
a number of unprofitable

CONVERTIBLE

BONDS

- Cnv. Cm.
data, pries

'A|ineaiou 5V 96' 7/BI. ..983

.Bow Valley fnv. 8 95 ... 4/81 23. K
Bridgestone Tire 5% 96 3/B2 470

Canon ft 95.'_ 1/81 829

* Daiwa Sadi. 5% 96-. 12/SI 5133

Fujitsu Fanuc ft 96. 10/81 5041
' Furukawa Bac. 5V «... 7/81 3»
Hanson O/S Bin. 9% 9S 8/81 . 138 ‘

Hitachi »ble 5V 96 2/82 515

'• HitacM-Cred. Cpn. 5 98-7/BI 1012
- Honda Motor 5% p 'S7.„... -3/B2 841

j ^nubeapa 8 95 ..L 2/81 ■ 456

Kawasaki ft .96 i. 9/« 229

Marti 6 96 ' - 7/St848A .

Minolta Camera 5 96... 10/81 826L4

Minorca SV 87 5/82-fi.lB

Morro ft 98 7/m xm-:

NKK 6% 96 7/SI IBS

Nippon Chami-C. 5 91 ...10/83 t 9T3
. : Nippon Baa/ic ft 97... 2/82 MS
Oriant Rnane# 5V 97 ... 3/82 1205 ,

Sanyo Etactrit 5 96 10/81 682-

Sumitomo Etac. 5%97._ 3/82577.3
. Sumhonio Met. 5V 96.. .18/81 296-1
Swow Bk. Cpn. ft 90... 9/M 1*1
Konishirofcu tf 90 DM ... 2/82 58S
. Mitsubishi N.'fi «■ DM 2/82. 20.

Chg.

Bid Offer day Pram
85V 87% -IV 2.51
99% 101 +0% 82.13
82% 84 -1% -2J20
91% 92*. -2V 8.97

M2 64 -1. —1.119
91V 93% “ft 16.56
S3 94% -0% -2.66
t84- 85 -0%-IIJBO
89% 90V -1% 3J4
78 90 -1

83% 85% -2%
t58 59% -1

62% 64 -1%

103 104% 0
61 V 63V -IV
188 87% -0% 29.29

68% 70 -1% 12.13
7S»i . 78 -2 -11.43
64 66 0 T8JT7

S2V 94% -0% AM
83% 94*. -1% 8JS
71% 73 -1% 17.86
. 87% 88% -1% 4.01

63% 64V -0% ».11
78 80 -0% SL99

101 102 -ft 156
to S3 -0% 1738

activities in an attempt to
adapt capacity levels to toe
depressed market, and the
improved result this year so
far has reflected this move.
However, continuing weak-
ness in toe housing and con-
struction morkets have had
a bad effect on the engineer-
ing . division.

9.19

Ito

17.7S

2.11

5.60

17.51

* No information .available— prevloua day's pries.

- 1 Only- one maricM maksr'aiipptisd a pries, .
Straight Bonds: The yield la the yield to redemption of tha
mid-plica; the amount ftsiwd Is in mffflons of currency'
units except tor bonds wHare h is In billions.
Cfa'ange on vmak-ChangO’ovor price a week earlier.
FTMting Rate Notes: Denomnwed ip dPdere unless other-
.wise indioatad Coupon ihown Is minimum. C.dte— Data
■ next coupon becomes effective. Sp reed ■» Margin abovs
y six- month off ar*d ' rate ft tlnaa^noitttw f above man
-rats) lor U.S. dollars. C,epno>the currant coupon.
" 1 'C.yld»The curtwn yfetdr . . ' >■

Convertible Bonds;' Denominated- in dollars uoina oiher-
' wise indicated. Chg: day “Change- on . day. Cnv. dete^
Brat data <or conversion Into shares. Cnv. price »-
Nominal MtPunt of bond per., share expressed In
currency of sham. St conversion rata .fixed at Issue.
Pram = Percentage premium ti the currant affective price ■
-of acquiring shares via the' bond over the moat recant
- price- ti the aharet.

American
Stores first
quarter gain

By Our Financial Staff • ■
EARNINGS HAVE . nearly

Q Tha Financial Times Ltd, 1K2. Reproduction in wftnls

or m pert in any form not pe rmit ted without written

consent. Ot tt *oppli*d by DA7ASTREAM Iriumational.

doubled in toe first qmuter
to toe end of April at
American Stores, whose
strong position in toe. pros-
perous Son Belt states has
' enabled It to buck the
generally dull trend in
retailing- •

Total net profits for the
quarter rose from $7m to -
S 13.7m or $1.40 a share on
sales of $L83bn against
$L68bn.

For the whole of last fiscal
year, American Stores lifted
earnings from S4.ll to $3.42
a share and. Wall Street ■
analysts are expecting about
$5 JJ5 a store this year.

Operating . results for toe
first quarter included esti-
mated costs and expenses ■
expected to be associated with .
these closures.

Since the end of toe first
' quarter. American Stores has
entered into an agreement
of sale for nearly all its
Alphy’s Restaurants in
Southern California,

Beatrice Foods expects earnings fall

BY OUR NEW YORK STAFF

BEATRICE FOODS predicted
yesterday that its 30-year nm
of improved quarterly earnings
—one of the longest in U.S.
corporate . history — will be
snapped when it reports
earnings for the first quarter
ending May 31.

Mr James Dutt, chairman,
told shareholders of the large
food company in New York
that the decline would be of tile
order of 10 per cent. The
quarter would be the toughest
of the year, he said, because of
the U.S. recession.

However. Mr Dutt predicted
lhat Beatrice's earnings for the
whole year will be higher than
last year, when Beatrice
earned $2.87 a share fully-
diluted.

Mr Dutt said that Chicago-

based Beatrice was planning to
spend about.$l25m expanding its
Coca-Cola bottling ^business in
California and Venezuela. The
company would also buy in up
to three, milli on of its 'shares
to replace stock which would
be issued in connection with toe
Coca-Cola purchases.

Beatrice earned a restated $1
a share fuily-dihned in last
year's firm quarter, including a
* cents a share charge from toe
adoption of Ltfo (last in first
out) inventory accounting and a
29 cents gain for the flow-
through of investment tax
credits.

“The dilution from .last
year's acquisition of Coca-Cola
of Los Angeles and Buckingham
will be felt most strongly in
the first quarter,” Mr Dutt said.

Mr Dutt said that -Beatrice
had. completed about 80 per cent
of its divestiture programme.

Over the past two years,
.Beatrice has sold almost 60
companies, accounting for about
'$Ion. i nsadcs per year. .

Beatrice was spending 84m
to ins Lai an asceptic packaging
fine at is Champagne, TIHtkus
plant. It expected to use ascep-
ric packaging for some of its
Meadow Golds dairy products
and for fruit juice, possibly
including some citrus juices of
its . Tropicana products subsi-
diary, Mr Dull said.

Beatrice had signed a fran-
chise agreement, subject to
Government approval, to start a
Coca-Cola Bottling operation in
Venezuela. The start-up of the
Venezuelan operation would be

financed with earnings from
eraisting operations in. that
country.

Mr Dutt disclosed that
Beatrice had completed toe
acquisition of Coca-Cola Bottling
of Rmti Bernardino, California,
for an undisclosed sum.

‘Food operations account for
some 76 per cent of total group
sales and 67 per cent of income,
with about 24 per cent and 20
per cent respectively coming
from outside toe US.

Major contributions to income
now come from travel and
recreational operations, and
from a chemical division. While
some slowdown was anticipated
this year. Wall Street generally
retains confidence in prospects
for longer terms growth at
Beatrice.

Horten outlook remains bleak

BY OUR FINANCIAL STAFF

HORTEN, the West German
department store group, expects
earnings to remain depressed m
1982 — even if the economy
starts to pick up.

The company expects unem-
ployment to increase and dis-
posable income to remain weak.
To cope with slaofc sales in the
industrial Ruhr district wherr
Horten outlets are concentrated,
management has started to
emphasise cheaper, lower
quality products.

In the first five months of
1982, total sales amounted to
about DM l.lbn (8462.7m), a

decline of 3.8 per cent from
the corresponding 1981 period
when adjusted to reflect com-
parable floor space. Neverthe-
less, Horten hopes for some
small improvement in its
autumn and Christmas business
this year.

Horten, which proposes to cut
its 1981 dividend to DM 2.50
per share from DM 4.50 in 1980,
saw earnings tumble almost 50
per cent to DM 12.5m last year.
For retailing 1981 was the
worst year in recent memory.

Retail sales for 1981 totalled
DM 2.87bn compared to DM

3.34bn the previous year. But
direct comparisons are made
difficult by the fact that the
company recently sold its food
and produce business.

Total 1981 sales were 5.3 per
cent lower last year than in
1980 excluding food, and just
4.5 per cent lower when
adjusted for the same floor
space.

Private consumption in Ger-
many dropped- 1.1 per cent in
real terms last year or 1.3 per
cent per capita. Retail sales
receded 2.4 per cent in real
terms.

No reply yet
to Mesa bid

By Our Rnanda/ Staff

Grupo Alfa $120m loss

BY OUR FINANCIAL STAFF

LOSSES at Grupo Industrial
Alfa, Mexico's largest private
holding company, were .spelled .
out in Monterrey yesterday by
Mr Bernardo Garza Sada,
president

He told about 1.000 share-
holders in the financially
troubled group that Alfa had a
deficit of more than $120m in
1981 compared with a net profit
of $158.8m in 1980. The group
has suspended interest pay-
ments on its S2^bn debt
because of cash flow problems.

The group, which has heavy
short-term debts shortly due for
payment abroad, has been sell-
ing off some of its assets, includ-
ing steel mills, breweries,
resorts, electronics, • petro- ;
chemicals, fibres, transporta-
tion, and paper mills, to try and .
stay afloat.

Mr Garza Sada blamed most
of the conglomerate’s troubles
on delays in expected product
price rises, high prices of
imported - goods and oh ' the
devaluation of the peso, which
makes it more expensive for
Alfa to pay off its foreign
debts, most of which are in U.S.
dollars.

He said Alfa would sell more
holdings and reduce invest-
ments. hut the stability of the
conglomerate was beyond
doubt.

Alfa wants to pay off" a $150m
loan from a Government bank
with stocks in Hylsa. an Alfa
subsidiary that produces steel
products; and was. its only off--
shoot to increase profits last
year, if the company cannot
liquidate its debt in any other
way.

Royal Bank
of Canada
sees decline

By Robert Gibbena in Montreal

CANADA'S largest chartered
bank, the Royal Bank of
Canada, had a better perform-
ance in the second qnarter of
this year compared with toe
first, but earnings generally for
fiscal 1982 are not expected to
match those of fiscal 1981.
Assets at April 30 reached
C$S9.5bn (U.S.$72.1bn), up from
C$71. 3bn a year earlier.

Second quarter earnings were
C$85. 3m or 92 cents per share
against C$104.5m or $1.25 a year
earlier and C$80.7m or 88 cents
a share in- the first quarter

In the first six months net
income was C$166m or C$1.80
per share against C$ 243.9m or
C$2.98 a year earlier.

MESA PETROLEUM, toe inde-
pendent Texan oil group, said
Lt still had not received a
formal reply from Cities Ser-
vices, regarding Mesa’s $3.9bn
bid offer.

Mesa has offered to buy 51
per cent of Cities Service's
77.9m outstanding shares for
$50 a share.

Cities Service yesterday called
Mesa’s offer a “rather weak
tactical manoeuvre " but
stopped short of rejecting the
bid.

Mr T. Boohe Pickens, chair-
man and president of Mesa,
asserted that Mesa's offer was
a “ responsible proposal which
we believe is in the best
interest of the shareholders of
Cities Service and! of Mesa."

International
Thomson links
with Jensen

By Our Financial Staff

INTERNATIONAL THOMSON
ORGANISATION, which holds
substantial oil and gas interest
through its 20 per cent slake in
Piper and Claymore, two of
the major oilfields in the UK
North eSa. is extending its en-
ergy activities in Canada with
the formation of a partnership
with privately-owned R. D.
Jensen oHldings. The partner-
ship. to be known as
Thomson-Jensen Energy, will
participate in the acquisition
and exploration of oil and gas
properties.

NEW ISSUE

These Securities having been sold, this amovnczmcnl appcars as a matter cf record on&.

MAY 1982

U.S. $60,000,000

The Long-Term Credit Bank of Japan Finance N.Y.

(Incorporated in the Netherlands Antilles)

Guaranteed Floating Rate Notes Due 1992

Unconditionally guaranteed as to payment of principal and interest fay

The Long-Term Credit Bank of Japan, Limited

(Rabushiki Kaisha Nippon Choki Shinyo Ginko)

(A Japanese Corporation)

LTCB International Limited

Bank of America International

limited'

Chemical Bank International Group

Credit Lyonnais

Manufacturers Hanover

limited

Morgan Guaranty Ltd

Credit Sirisse First Boston Limited •

Banque Bruxelles Lambert S.A.

' Commerzbank Aktiengesellschaft
Lloyds Bank International limited
Merrill Lynch International & Co. t f
Salomon Brothers International ‘

Swiss Bank Corporation International

limited

S. G. Warhnrg & Co. Ltd.

IMm Barik.of Switzerland (Securities) /

Limited

Westdeutsche Landesbank Girozenfarale

Algemenc Bank Nederland N.V.
Banque Europeenne deTokyo
Banque de Paris fit des Pays-Bas

Amro Infematiohal

- limited

Banqufe de ITndocKne et de Suez

Bating Brothers & Co ^

. . TJyiml

Bankers Trust International £ -

Limited I'J

c:

Banque Nationalc de Paris f. f

.{

Blyih Eastman Paine Webber - ~ ,

Chase Manhattan Capital Markets droop '"

Chaac Maahxttu Liodlad

ContincntalHIinois

limited •

Comity Batik

CrMit Commercial de France Creditaiistalt-BankTerein Dai-Ichi Securities Co* lid. Daiwa Eitrope

Limited

The Development Batik of Singapore

, Limited

Emapean Banking Company

-Limited *

Genossenschaff^^

Girozentrale und Bank der 5sterre?dif«j>en fip arirBssen

A h liw^l« >lhl4rf f

Goldman Sachslnteraatkaial Cmp. : Hamhros Batik

HID Samuel & Co.

Hwirtii

Eenmort, Benson

Kidder. Peabody International

LTCB Asia ■ LTCB (Schweiz) AG

ISmtfM - .

Morgan S tanley International The Nxkko Securities Co., (Europe) Ltd.

Samuel Monta gu&Co.

Morgan Grenfell & Co.

Lhmod

Nippon European Bank S.A.

NipponKaugyo Kakumaru (Europe)

limited

Nomura International

_ limited •• •

Orion Boyd Batik

Limited

Smith Barney, Harris Uphaia & Co. Society Generate

Jsagpozited

Wp.od Gundy . Yamaidu Iuternational(NederIand) N.V.

. Financial Times Thursday. June 3 1982

May 1382

Thfeararouncsmant
as a matter of record

KINGDOM OF SPAIN

US$450,000,000

Term Loan

Banco Hfepano Americano, SA

Crocker National Bank

IBJ International Limited

The Lcmg*lerni Credit Bank of Japan, Limited

Caja de Ahorros Municipal de Bilbao

(BabaoSannssBiad

Grticorp International Group
The Riji Bank, limited
Lloyds Bank International limited
Marine Midland Bank, NA
Cajade Barcelona

Amsterdam-Rotterdam Bank N.V. Arab Bankfor Investment and Foreign Trade

Banco Espano] deCredito warn - w ! arnto ‘ 0h,,l,

Irving Trust Company . Banco de Vizcaya

RepublicBank Dallas, NA TheNippori Credit Bankr Ltd.

Security Pacific Bank The Sanwa Bank, Limited

The Taiyo Kobe Banki Limited The SumitomoThist and Banking Co

Managed By:

The ChuoTrustand Banking Company, Limited fir st Interst a te Bank of CaBffomia

Rrst Pennsylvania Bank NA Industrial National Bank of Rhode Island

The Kyowa Bank, Ltd. Mellon Bank

The Tokai Bank, Limited Banco Popular Esparto), SJL

Go-Managed By:

AlgemeneSpaar-en Lijfrerrtekas, The Daiwa Bank. Limited

Banco de Vizcaya

The Nippon Credit Bank, Ltd.

The Sanwa Bank, Limited

The SumitomoThist and Banking Co., Ltd.

AlgemeneSpaar-en Lijfrentekas,

Caisse Generale d'Epargn e et deRetrafte
Mercanfitehist Company NA

•I

Banco Hisp&no Americano.SA.

The Fuji Bank, Limited

The Long-Tem$Cr«fit Bank erf Japan, Limited
Citibank, N. A.

Marine Midland Bank; N A

Arab Bankfor Investment and Foreign MdwamMnDUl
The Nippon Credit Bank, Ltd. ...

The Sum it ora o Trust and Banking Co., Ltd.

Caja deAhomra Municipal do BtiiwofBfflnoSavfoarBmfc}

Security Pacific Bank

RepublicBank Dallas, NA

Rrst Interstate Bank of California

Industrial Netlond Bank ofRbodo Wand

Mellon Bank

Banco Popular EspaftoLSA.

The Daiwa Bank, Limited
Rainier National Bank
BanquedenndoctrinsetdeSuaz
BancoArabe EqiaAolrSArAiMbmk
Credit du NotdSA, London Bnnali
Hartford National BankanTBust Co.

Banco Simeon, SA

Rainier National Bank

•Provided By:

Uoyds Bank International limited
The Industrie Bank of Japan, Limited
Banco Espaftol deCracSto PAKCTO)

Crocker National Bank
Aimtwda w -not tni am Bank NX
Banco de Vizcaya
TheSanwa Bank, Limited
The *Wyo Kobe Bank, Lirmted
Cajade Barcelona
Irving Hurt Company

The Chuo'ftust and Banking Company, Limited

HrstFerniysfvaidaBankNA

The Kyowa Bank, Ltd.

The Tokai Bank, Limited
AlgamaneSpaaren Uffrmtefcas
Caisse Generale dTpargnaetdeRetraite
Mercantile Thist Company NJL
Bankfmr Arbeit und WlrtadHrft AS
Banco de Andahicia, SA.

Banco do Estedod«Sfio Paulo SA froadoa Branch)
First National Bank of Atlanta
Banco Herraro

Agent Bank

Lloyds Bank international Limited

The Pacific Telephone and Telegraph Company

American Telephone andTelegraph Company

Dillon, Read & Co. Inc.

May 18,1982

US$100,000,000

Merrill Lynch Overseas Capital N.V.

(Incorporated with limited liability in the Netherlands Antilles )

Guaranteed Floating Rate Notes due 1984

Unconditionally Guaranteed by

Merrill Lynch & Co. Inc.

In accordance with the terms and conditions of the above-mentioned
Notes and Fiscal Agency Agreement dated as of November 15, 1981
between Merrill Lynch Overseas Capital N.V., Merrill Lynch & Co.,
Inc., and Citibank, NA, nociee Is hereby given that the Rate of
interest has been fixed at 14|% pa and that the interest payable
on the relevant Interest Payment Date, September 3, 1982. against
Coupon No. 3 in respect of US$10,000 nominal of the Notes, will be
US$370.56.

Weekly net asset value

Tokyo Pacific Holdings (Seaboard) N.V.

oh June 1st 1982,- U.S457.71
Listed on the Amsterdam Stock Exchange

Jnfonnatfon: Pierson, HeWring 4 Pierson N.V,

Horengracht214*1016 BS Amsterdam.

June 3, 1982

By: Citibank, N.A., London, Agent Bank ,

CITIBANK

1A INTL: COMPANIES & FINANCE

France’s paper industry fights for survival. David Hopsego reports

Fingers crossed at Darblay

CHAPELLE- DARBLAY, the
French paper manufacturer
which accounts for 90 per cent
of domestic, newsprint - produc-
tion, filed for bankruptcy IS
months ago — a victim of a
similar malady of outdated
&lant and higher costs of energy
and imported pulp' that has
inflicted other EEC producers.

After a brief recovery four
years ago. when it recorded
profits of FFr 2m ($325,000) in
1978 and FFr 27m in 1979,
Darblay fell bade Into the red
in 1980 with a loss of FFr 157m
on a turnover of FFr 1.21m.
Total r-iaims by creditors when
the company filed for bank-
ruptcy- amounted to FFr 910m.
Of this about FFr 290m was
due to suppliers — many of them
manufacturers and traders in
the Rouen area, where Darblay
has its -two major plants and
whose future is now closely
linked to the fate of the group.

Worried by the political
impact that the closure of a
company with a total workforce
of 4,500 could have had on last
May's presidential election, the
former Government of Presi-
dent Giscard d’Estaing decided
to cover the company’s losses
and keep it temporarily afloat.
Ownership of Darblay. is split
between the state investment
institution EDI and Paribas
(now also nationalised).

But there seems little doubt
that the ultimate intention was
to let the company (or at
least its major units) ~ fold,
in the belief that France should
discard its traditional high cost
industries. Newsprint produc-
tion costs at Darblay are about
25 per cent above those of
Scan da navi a and 60 per cent
above Canadian costs.

The Socialists, have rejected
this, solution as defeatist-^Jl
Pierre Dreyfus, the Industry
Minister, says no major sector
of industry can be regarded as
“ condemned-' 1 Among reasons
put forward for attempting to
rescue at least parts of Darblay
through a -modernisation plan
are:

• The strategic importance for
France of maintaining an
independent domestic source of
newsprint supply. This logic
has been -accepted by successive
governments and lies behind
French newsprint manufac-
turers being provided with a
guaranteed market and being
paid, through an official sub-

Rauma-Repola
falls short of
profit target

By Lance Keyword) in Helsinki

RAUMA-REPOLA, the Finnish
forest products, engineering and
shipbuilding group, increased
net earnings in 1981 by 1 per
cent to FM56m ($14m).
although turnover rose by 15
per cent to FM 3.79bn. It main-
tained its dividend at 10 per
cent

The company reports that its
result was “ not as good as
expected.” The meeb arnica!
woodworking division ran up a
loss, and the shipbuilding and
engineering divisions did better
than in 1980 but failed to meet
their targets.

• Huhtamaki, the conglomerate
with interests in the food,
beverages, pharmaceuticals,
plastics, packaging and engineer-
ing, reports a satisfactory result
for 1981. Net sales increased
by 15.8 per cent to $410m, of
which exports accounted for 28
per cent Net earnings increased
from $2.6m to $4 ,4m.

sidy. -8| per cent above the
going international price. . In
spite of this French newsprint
production fell from 445,000
tonnes in 1970 to 260.000 tonnes
is 1980. Darblay’s output of
newsprint in 1981 was 235,000
tonnes or 55 per cent of total
group production.

• The scope for reducing:
France’s trade deficit in paper
and pulp' products. This
reached FFr 5.7bn in 1981 (the
equivalent of about 10 per cent
of France’s ’ overall . trade
deficit), of which FFr 950m was
In newsprint. The combination
of large sales in France and
extensive French forest re-
serves is seen as a strategic
base for a domestic industry
geared to a “reconquest of the
domestic market”

• Closure would -add seriously
to unemployment in- a poli-
tically sensitive area. Of the
4.500 jobs at -stake at DaiWay,
about 2^500 are at Grand-
Couronue and St Etienne-du-
Rouvray, neighbouring fac-
tories on the Seine on the out-
skirts of Rouen. But unions
believe that the ripple effect
from a closure would be the
loss of about 6,000 jobs in the
Rouen area. The area already .
has one of the highest rates of
unemployment in the country
and is also in a Socialist-
Communist belt. -

Since the late 1970s 14 rescue
plans have been drawn up in
an attempt to save Darblay,
which is also a substantial pro*
ducer of coated paper for maga-
zines. In fact, it seemed that
the former Government had
itself embarked on a rescue
plan when it twisted Paribas’ •
arm in 1978 to help finance
FFr 275m of Darbia^ invest-
ment.

This comprised FFr 200m for
a new paper making machine
at St Etienne and FFr 75m for
a generating plant at Grand-
Couronne. Most of the equip-
ment at the two factories,
which together . - account for
Darb Lay’s newsprint produc-
tion, dates from before the
Second World War. This initial
investment was to have been
part of an overall FFr lbn
modernisation plan that would
have also embraced the com-
pany’s third factory at Corbel! -
Essonnes. Rut it was aban-
doned in 1980 in the face of
rising- losses at Darblay and the
advancing competition of the

Scandinavians • : atri North;
Americans in West European
markets. Part of the bitterness,
ef the unions— the Communist-
led CGT, which is demanding
the nationalisation of Darblay,
is by far the strongest— -is the
result of this unexpected turn-
round.

All the plans depend on a
continuing subsidy, for French
newsprint production^ and; far
varying -degrees of sate Invest

RECENT PERFORMANCE
• Notprofit/losj
- FFr

8- 2m-

* 27m •

0- • " *157m

:l ■' : *16401.

2 . >100m . estimate

ment. In addition, industry
executives see no way - that
newsprint production could
yield commercial return on
capital for several years!

Tem between anxiety to
mai ntain the competitiveness of
French industry, the already
heavy demands on the budget,
union and employment con-
siderations and the strategic
importance of. the paper indus-
try, the Government is still
reserving judgment. The price

of delay is that it continues to
cover losses which, amounted to
FFr I64m in 1981 and are
expected to be down to
FFr 100m this year as a result
of labour saving.

. These losses take into account
a 12 -month freeze on wages and
a continuing freeze on financial
charges.

The two proposals that appear
to have found most support in
the Ministry of Industry — the
Government department where
lie initial decision lies — both
involve the dismantling of
Darblay and a strong Soandi-
naviab participation: As suah
they have run into opposition
from both the unions and tibe
French paper awfustry. French
manufacturers believe that
Scandinavian companies want
control of Darblay’s distribution
network — ks subsidiary
Papeterie Navarre has 10 per
cent of the market— and to pave
the way for increasing Scandi-
navian paper imports.

The first proposal is based on
a consultancy plan put forward

V-byrlSie major Scandinavian pro-
ducers, Siora- Kopparberg of
'Sweden and Tempi* of Finland,.
TL- would involve a FFr 400®
investment at Gxand-Couronng
.spread over four- years, i The
wart would continue to coscen*'
irate bn newsprint production
with:: a • slightly expanded
capacity -of between 120,000. and
■140;000 tonnes .and the. possj.
bility. of. doubling this latenr A
' major reduction, in costs would
be .achieved by using -French
-wood- -and '.waste paper as raw
materials instead of imported-
wood from Canada and Russia.
But Stora appears reluctant to
put up any of the finance. The
plan could also involve ihe
closing of St Etienoe.

• For the St Etienne plant* the
proposal under study has . been
put forward by Modo, the largo
Swedish group, which _ has
recently taken a. 49 per cent
holding in Cellulose (TABsay .
(formerly part of - the - : now
defunt Groupement European de
la Cellulose — GEC) and Which
manufactures chemical pulp
near Rouen. The plan iflftmld
be to transform the factory away
from newsprint and towards
wopd-free printing, and writing
papers — drawing on raw
materials. from nearby Cellulose
d’Azilay. Modo would bear the
cost of the investment but
would require' the Government
to' bear the redundancy ' costs
involved in reducing the work-
force from' 1^270 to 700. .

As a result of hostility to both
these plans , tbe Government
has commissioned a fresh study
from Begh in-Say, the Ffench.
paper and sugar manufacturer.
The group recently opened a
new coated paper plaid: at
Corbeli em in the Pas- de -Calais.
The origins of the study lie jn
a recent semi-official report- on
the potential development of *
the French newsprint industry
focused on both Darblay and
Beghin-Say. But total invest-
ment could run up to FFr lbn
and would depend on. state
funds. r -

Darblay’s creditors as WfcH as
the unions involved are pressing
for a rapid decision. As in the
steel and textile sector, the
Government’s response will be
an Important test of how it
balances the demands of tradi-
tional industries against those
of its high technology informa-
tion industries.. It does not have
the resources to do .everything.

PHW in Japan marketing deal

BY JONATHAN CARR IN BONN

PHB WESERHUETTE XEHW),
the West German group
specialising in mining and
mechanical .handling equip-
ment, has reached an agree-
ment which it sees as a first
step to opening up the difficult
Japanese market

PHW and Kajima Corpora-
tion of Tokye have agreed
jointly to offer coal handling
equipment, built largely with
know-how from PHW, on tbe
Japanese market.

For PHW the agreement
means a breakthrough in a
country where it has long seen
good prospects but where, until
now, it had failed to find a

.suitable partner; '

Herr Peter 'Jungen, board
chairman, ..stressed at tbe
annual press conference that
Japan was already a major coal
importer and was likely to
double coal consumption over
the next two decades.

Much of Japan’s future coal
was likely to come from
Australia, where PHW already
had a very strong foothold, not
least as supplier of materials
handling plant for the con-
tinent's biggest coal export
plant at Newscastle. PHW thus
stood to gain increasing busi-
ness at both ends.

Looking ahead, Herr Jungen

saw a further i n c re as e' in over-
aflsales and earnings this year
—but not such a dramatic
boost in incoming orders as in
.1981.

Last year the group orders in-
take rose by 29 per. cent to
DMLSJbn ($506m) and parent
company orders increased by
35 per cent to DM687nv-
mafia] y as a result of the «tri3»
by customer countries to invest
in oil substitutes, principally
coal.

Herr Jungen noted that de-
mand could not be expected to
continue to expand so rapidly,
not least because of the stabil-
isation of tbe oil price.

O and K looks for recovery

BY OUR BONN CORRESPONDENT

Standard Telephone

The initials STC are the
registered trade mark of
Standard Telephone and Cables.
Their use in a recent article
concerning the. Scandinavian
Trading Company was In-
advertent

ORENSTEIN and Koppel, the
West German engineering
group, hopes to cut its losses
further this year and move back
into profit in 1983.

The company said It was
making good progress with its
rationalisation plan . and
expected buoyant industrial
plant sales. On the other hand,
sales of building equipment, an
.0 and K speciality, were likely
to stay weak.

The annual press conference

was told that last year O and K
reduced losses to DM 46.9
(620ml from DM 49.6m in 1980
(after a profit of DM 5.8m in
1979). .

Board members emphasised
that costs had been cut," produc-
tion was being concentrated on
fewer factories and the product
palette itself had been revised.
However, these rationalisation
measures themselves had
Initially been costly to intro-
duce and would only be seen
to pay off in the longer term.

Further, O and K— like its
domestic competitors— -had been
hit badly last year by the weak-
ness of the domestic economy
and of the construction indus-
try in particular. Group turn-
over had marked time at
DM 2.3bn — but within that
figure domestic sales had fallen
by 24 per cent to DM '425m.
The major boost came from
exports (up 36.5 per cent to
DM 385m) and from the sales
of foreign subsidiaries (up 6
per cent to DM 457m).

This advertisement complies with the requirements of the Council of The Slock Exchange.

Texas Eastern Finance NA£

(Incorporated in the Netherlands Antilles)-

$ 60 , 000,000

15K% Guaranteed Notes Dae 1989

Texas Eastern Corporation

Offering price: 100% of the principal amount, plus accrued interest, if any, from Jone 1, 1982
The following, among others, have agreed to subscribe for the Notes: '

VONTOBEL EUROBOND INDICES

143.74

= 100%

PRICE INDEX

1.6.82

25.6.82

AVERAGE YIELD

1.8 82

2S.5-82

DM Bonds

96.10

.96.33

9.061

9.034

HFl Bonds & Noras

89.87

99.81

10.014

9.885

U.S. S Si rL Bonds

90.64

90.7Q

13.918

13.897

Can. Dollar Bonds

92.17

- 9156

-. Can.. Dtrflsr Bonds

15.284

15.341

BanqueNationale de ftris CoimtyBankLimited. . GreditLyonnais

D eutsche Ban k IBJ Infematkaial Limited Kredietbank International Group
Orion Royal Bank Limited IMonBankofSwitzeriand^eciRih^) ! ;^

S,G.WarLm^&Co.Ltd.

The Notes constituting the above Issue have been admitted to the Official List by the Council of The Stock
Exchange, subject to theissue of the temporary global Note. : . . -

Full particulars of the Notes are available in the Extcl Statistical Service and may be obtained. durimr usual
business hours (Saturdays excepted) up to and including I7th June, 1982 from the Brokers to the Issue*—

Cazenove & Co,

_ « , 12 ToLenhoose Yard,

3rd June, 1982 ■ London ECZR7AN

1 W

.‘ major «...

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Financial -Times Thursday June 3 1982

- INTERNATIONAL COMPANIES and FINANCE

29

m sugar

SY'MCHMB. THOMPSOOMOGL *i SYDNEY

Wb.' ’> -’■

siotiT -,, lri: ; r ;:

K P! d ^ --Ai; ■-

.•nif 1 •.. • .

CSR, Australia’s third largest'
tjnmpahy, made a net profit of
A$82.4m (TJS$S6^m) in the
year to March 31 1982, a faH
of 264 per cent on I98ML
• The outcome was in line with
recent forecasts, and primarily
reflected a slump in earnings
from . the 'group’s . sugar divi-
sion, where profit in . 1981-82
was more . than halved, - at
A$22.2zn against A$584m pro-
ytously. _ '.■■•■••

The ' company's. - building
materials division marked thn»
with .a net profit of A$234m
against A$W. 1m. and there was
a reduced contribution from
aluminium and- chemicals, at
A954m compared with. ASlO.lm.
-However the energy division
showed an improved profit of
A$23.4m, up from A$l£L5m, and
profit from minerals was better
at, A$84m against A$6.1m* . .

A final dividend of 9 cents per
share is being recommended,
for an unchanged total distri-
bution for the. year of 18 cents
per share.

Group revenue showed a 3.5

per- cent fall, at- A$1.76bn,
while ■ operating profit (before
Interest of A$24m and income
tax of A$352m), was 302 per
cent lower at A$154m.

■ The . directors said slower
growth in most export markets
had seriously affected com-
modity demand prices- Export
prices for sugar had - fallen
steeply, and lower prices also
affected the soup’s distilleries;
its Indonesian tin-mining In-
terests, and its Ht Gunson
copper mine.

Capital expenditure during
the year was A$545xn, including
A$147m iff equity and loans to
Delhi Australia Fund (DAF), a
financing trust sponsored 1 by
CSR, and to Delhi Petreloum,
die operating company con-
trolled by the fund.

The main capital outlays in
the year ahead, said the com-
pany, would include .a total of
A$182m on coal interests:
A$50m on DAF: A$25m on the
Tomago aluminium smelter and
A$180m on other ventures.

Michael Thompson-Noel explains why key stakes in the Cooper Basin
oil and gas liquids project have changed hands

Bond cashes in for A$188m

Midway earnings rise at
Herald and Weekly Times

BY OUR SYDNEY CORRESPONDENT

THE MELBOURNE - based
Herald and Weekly Times has
reported a ; 17.6 per cent In-
crease in net profit for the six
months to March 81, to
A$ 12.43m (US$1 3m).

The result represents 13.1
cents a share, against ill cents
a share, and was after A$7B2m
of tax and an allowance of
AtfLSm for depredation.

‘Turnover was 15.0 per cent
higher at A$173m The interim
profit before tax, minority in-
terests and extraordinary items
was A$20.72m, up from

A$17J98m.

The group is still the subject
of a A$132m partial take-over
bid by Mr Robert Holmes ft
Court’s Bell group, which is
bidding for 50.1 per cent The
Bell offer was initsaDy rejected
outright because it was partial,
conditional and contained
“many unsatisfactory features.”

But the offer deadline, has
been extended to July. 26. Most
shareholders' are. awaiting the
outcome of an Australian
Broadcasting Tribunal hearing
on the offer.- '

Sharp advance at UEB

BY DAI HAYWARD IN WELLINGTON

UEB INDUSTRIES, one of New
Zealand’s large Industrial com-
panies heavily involved in
packaging and carpet manufac-
turing; has achieved a 50 per
cent . jump in profits to,
NZ$154m.

Sales were 6 per cent higher
at NZ$241m aithongh exports
showed - • only a- jharglhal

increase' from NZ$33m to
NZ$36m.

The company suffered from a
shortage of - yarn for -carpet
manufacture during the year
becanse of a fire in one of its
pfanis."'.' ' “

UEB is to- make a one-for-ten
scrip issoe and wtU pay a
dividend of 25 cents a share.

MR ALAN BOND, chairman of
Bond Corporation, does not
suffer vertigo. Last night, in his
suite of offices on the 29th floor
of the Stock Exchange building
in Sydney's Bond Street, this
famous survivor of the
Australian business scene was
calmly surveying the latest
coup — the sale, late yesterday,
of the bulk of his groap’s share-
holding . in Santos, the South
Australian oil and gas producer.

Xn a deal that had been
preceded by intense specula-
tion, Mr Bond sold 1323 per
cent of Santos to tbe National
Mutual Life Association of
Australasia. the country’s
second largest life office, i tor
A$136-8m (U.S2143.6m) — re-
taining a nominal 127 per cent

On Tuesday, Bond Corpora-'
tion offloaded its entire stakes
in Reef Oil and Basin Oil, which
together with Santos are among
title partners in the Cooper Basin
development Australia's most
valuable onshore oil and gas
project.

Tbe proceeds of these trans-
actions total AS 188. 5m. All of
it is being used to reduce
Bond’s ever-pressing debts— put
by Mr Bond a few weeks ago.
at around AS250m.

Thus, with a skip and a
bound, Bond Corporation has
transformed its position from
one of painful over-gearing to

quite the reverse.

“We are now. substantially
undergeared,” Mr Bond said
yesterday quite seriously,
agreeing that the new look of
-Bond Ckxporatinu, shorn of its
stake in the Cooper Basin and
with its prime assets now in
browing and property, looked
somewhat tamed wad sedate.

Not that everyone wifi be
pleased. “ It vtifi be. less exciting
for our Australian shareholders,”
sitid Mr .Bond. “ They like their
risk analysis faewr.”

The sale of Bond's stake in
Santos was - not unexpected
Last September, when Bond
Corporation bought Western
Australia's' Swan Brewery with
tiie aid of an A$130m loan, Mr
Bond safd that something would
have to be sold, to reduce group
debt

What was not expected, at
least in Australia, was tbe scale
or scope of ins Cooper Basin
disposals. Mr Bond has pulled
light out of what many regard
as the country’s most exciting
energy project Yet the Cooper-
Basin liquids scheme wHl not
yield significant cash flow for
at least another two years.

A combination of at least
three factors may have been at
work:

• Trading losses incurred by
Walton Bond in its recent

Shnp&ctty Pattern transactions,
which are thought to have cost
at least A$7m;

• Further losses experienced in
the group’s industrial diviaon
in the past 12 months, due to
depressed economic activity in
Western Australia;

• Current Ugh interest Tates,

which - are cutting a swathe
through boardrooms across
Australia. ■■ •••’-"■

Of the Santos dead, Mr Bond
said yesterday: ** Bond, is
effecting the majority of the
group’s debts on a long term
basis, with a consequent reduc-
tion in gearing we may

not always pursue our long term
objectives as . some " other
companies dot Nevertheless, R.
is this sometimes unorthodox
approach which has got Bond
Corporation where it is -today."

In any case, he said, there
would be another energy and
mineral project for Bond -to
apply itself to. via Pacific'
Copper, of which it holds 20
per cent, and Endeavour
Resources.

The main planks of -the Bond
Corporation now are Swan
Brewery and Waltons Bond. The
latter has property assets valued
by Mr Bond recently at more
than A(200m.

Bat Swan is the apple of his ,
eye. He predicted recently that

Mr Alan Bond

its cash flow over the next five
years was likely to average
A$50m-A$60m a year, and he
said that its under-utilised assets
would be used to help pump a
w tremendous volume ” of beer
into South-east Asia. -
Last night, .it could be said,
HoudinJ was alive and well and
stalking the 29th floor of : the
Sydney Stock Exchange
■building. -

First-half downturn for KLK

BY WONG SULONG M KUALA LUMPUR

KUALA LUMPUR KEPONG
(KLK), Malaysia’s fourth
largest plantation group,
suffered a 28 per. cent drop m
after-tax profit to 13.7m ringgit
(US$6m) „ for 1 *6 half-year
ended March.

The downturn was largely
due to the' depressed robber
price which has fallen by more
than 40 per cent in two years.

The group recorded a 37 per

cent drop is pre-tax earnings
to 15.5m ringgit on turnover
down 25 per cent to 61.4m
ringgit

Earplugs from overseas
investments were lower bid:
this was offset by a sharp
increase in contributions from
associated companies.

Rubber production was
marginally lower at 82m kDtis
due to tower yields and prices

obtained were a good 30 per
cent tower at 204 cents per kilo.

Output of petim oil rose by
13 per cent to 182,000 tonnes
(hie to better yields and a
larger maturing acreage and
prices obtained were 5 per cent
higher at 911 ringgit per tonne;

KLK is expected to pay ' an
interim dividend later in the
year. The interim pay-out for
1980-81 was 22 cents per share.

ED bond issue by Orient Leasing

TOKYO — Orient Leasing Com-
pany^ Japan's largest leasing
company, is to issue 221m of
Kuwaiti dinar-denominated
common debentures on June 9
through Orient Leasing Carib-
bean. An 'underwriting agree-
ment has been signed with a
syndicate led by Kuwait
International Investment.

The bonds will be sold mainly
in Kuwait and nearby countries
but will also be offered on tije
London Stock Exchange.

The coupon rate on ibe five-
year bonds win be set at 12.75
per cent per' annum, somewhat
lower than the 15.5 per cent to

The company will -also issue
$20m of doHar-denozninated
convertible debentures in
London on June 15. An under-
writing agreement has been
signed with a syndicate lead by
Daiwa Europe, based in London.

iuww tuau uhs -u>.u tier ran w The coupon rate on the 15-yeaT i i
16 per cent dn UJ5. dollar bon ds ' bomls has been set a t fi - g frT per+fl
of the same duration. cent per^ annum. Kyodo- 1

Middle East
Airlines
in the red

By Michael Donne,
Aerospace Correspondent

MIDDLE EAST AIRLINES, the
fig carriers of the Lebanon, in-
curred a trading toss -off £20m
in 1981. compared with a small
■profit of just over £Im in 1980.

Mr Asad Nasr, chairman, said
in Beirut that the causes were
the depressed state of the Leb-
anese travel market arising
from the continued hostilities
in the country.

But Mr Nasr stressed tint de-
spite the difficulties, the air-
line still retained substantial
reserves. Assets exceeded cur-
rent liabilities by about £33m.

Mr Nasr said that “though
several months will be required
before a complete recovery is
attained, much progress has al-
ready been achieved and ,4he
1982 results; are expected tore;
ect-ar xnajor-improveme nt -ovet' 1
1981J*

. U.S. $30,000,000

The Korea Development Bank

(In co r p orated in the Republic of Korea under The Korea
Dewtopmeni Bade Act of 1953)

Floating Rate Notes Due 19 89

Id accordance with the provisions of the Notes, notice t$
hereby given that for the six month Interest Period from
3rd June, 1982 to 3rd December, 1982 the Notes will carry
art Interest Rate of 1 4H% per annum and the Coupon
Amount' per U.S. SI, 000 will be U.S. $7530.

Credit Suisse First Boston Limited
Agent Bank

The Industrial Bank of Japan
Finance Company N.V.

. US 550.000,000

-Guaranteed Floating Rate Notes Due 1985

In accordance. with the provisions of the Reference Agency Agree-
ment betweeir The' Industrial Bank of Japan Finance Company N.V.,
The Industrial 'Bank of Japan Limned and Citibank, N.A., dated
: November 28, 1978, notice is hereby given that the Rate of Interest
has been fixed at 14j% pa, and that the interest payable on the
relevant Interest Payment Date, December 3, 1982, against Coupon
No. 8 will be US$74.98.

June 3, 7982

By: Citibank, N.A.. London, Reference Agent

ClTIBANfO

.'v.. : :- V '• .

AUSTRALIAN
OIL & GAS BULLETIN

Quenf&i Cameron has edfled ftis newfelfer forfte Iasi 15 yefrsandit
is mandatay reading for ail tiiose concerned with this sectac
H^ly respected and reHabte.it provides a fortngb^ update on all
exploration activities plus informed and trusted comment on exploration
companies, their management, financial stiucture and activities.

Annual subscription (ind. Akmafl) £60 CoEn NL Newman,

2 Oafc dene, 74 Porimore Park Road, Weybridge. Surrey. Tat Wey&rfcfeB S 22 SS
Tetec 929988 or Quentin Cameron, 5 Rupert Terrace, Ascot, 4007,
Queensland; Austria.

NEW ISSUE

Tfe JJebaOvrs hare not bem registered ntder the Untied Slate? SeovSitt Act cf 1933 and mop not be
offered or sold intltc Untied Slates of America or to nationals or residents thereof.

These Ddtcntms bavingbtaisoid, this aanamcanaU appcars as a natter of record onfy.

TONE 1982

U.S. $50,000,000

IPF (Illinois Power Finance) Company N.V.

- ( Inc or p orated rift Bndted BnbUOy in the Nedtaiatds AntBks)

14/4% Guaranteed Debentures Due 1989

Unconditionally guaranteed as to payment of
principal premium, if any, and interest. by

Illinois Power Company

. 0»^SiilBsefl2StBos<ra££Bitted

Algemene Bank Nederland N.V. BanqoeBime^^

BanqneNationalede Paris Banqnede Paris etdesPays-Bas Comity Ba nk Limi ted

OresdnerBank Gfrozentrale mid Bank dor os teny ichischen Sparkassen

AkBogesdbcbaft . AWa p wfa l i i lt

Menjfl Lynch International# ; Cp» Samuel Montagu & Co. limited

SwissBank Corporation Intemational limited

Own.
UGettardo

. Amr oTafomfloBd

Lolled

Bank of Ansctfc* bkmAul

btMUWlWt

B*A CttMe St rit ear h ag (<CX>

Vmk LeaWcaafiaw* UtL

fink Ltmri tobmd

Banea CamustUe litfmx
Bade GduriDer, Kart, Btmsener (Oman)

LUM

Brit M«s& Hope NV ‘ Bmk'of Tokyo latermdoafll

Binqne Privfc de^^sfioe Pn»»fi*e

Ok

On teBnA: .

jkaniBvrtaiolJntat .

^ ju— T n H mafliaal Coro DuftnoBat

E. R Battoi fcteadkanl lac.

Icaad ftoftsw ACtt,

■ Bmpe Worms Hiring Braftas & Co,

BnvrisetoVenindndc - Beir, Steaq»JfcCe.

Bafegf HanAcfe- Fnn Afiuto Bmk IByft EBlinw WreW aber

UHai

CoaneftCtoL ■ CktseMsdstfteCqfttalMxricetsGn^ caicwp Jhfaaritad Gr«v

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EunuBobiEan EnrtpesaBan ttjgCompoy GmMs q tsctdtfirbr Zwli J U ti b AG

HiBddsbmk N.W. (Oymua) . Besasde Lmdedwdc

UhM :-. . CillliiWuh

SMhta, Ptdtog bOamariaBd KJauwert, Beosai

Hffl Siraad ACo.
UM 1 ■

KrafiefinakrtV.,

Uoyfc Btak blf i iiifimul

Otin Boyd]
Sdomv BnAea fadematiotal

IsidnbaetO leharrn Briifem Kdm Loeb ldaniflUM] , toe.

. LTCBJdrtBHfinrf . BfrBH&etara Bn^nx
Ike rSioSeasffies Cd, (Emope) Ltd. Nam Biferadiead NorfScBnAPLC

ImM

fca7rfd ^Xaninta*- i^kmtffioarilXA Haso^neMri^APfcr«N.V^

SchrSto, bfibdiBi^&oMftCa. J-HemySthoteWasgACb. . Scridi Bin«y . BgTfe l Jphi« & Co.

SocHtfCSoMadeBwpeSA. • StadBdObrtwdMmtadBtak

jB wiwAm mill Intiwilrm J.Yi*taWACfc

" .' WbodGmdy Yttnddl XdaM^md (Europe)

ga adu s Ha iBidt

NEW ISSUE

3ht Notes kave not beat r e g is te red wider tbe Umted States Seamths Act of 1933 rnd may not be

offered or sold in the United Slates of America or to nationals or residents thereof.

ihauiKualiSih^Beineold^atd m i m i^mi appidfimra Mettar of fecafdimly; -

JUNE 1982

U.S. $125,000,000

Superior Overseas Finance N.V.

'(fratfponOei wf* Btndtd UidnStyiirtke-NetiKrimds AndUes)

14% Guaranteed Notes Due 1989

Unconditionally guaranteed as to payment of
principal, premium, if any, and interest by

The Superior Oil Company

(Incorporated tit Nevada} -

Credit Suisse first Boston Limi ted

Basque National© de Paris

Morgan Staidey International
Swiss Bank

S. G. Warbnrgf&Co. Ltd.'

Basque de Paris et des Pays-Bas
Morgan Guaranty Ltd
Salomon Brothers International

Union Bank of Switzerland (Securities)

■ T.imitrrt

Wood Gm^y limited

AUEBad:arbmttE&C. Algoncae BcidtNedcrixad N.V. AmroXBtentaflnial Arab Baafcag Qn-p utaflo n (ABC)

LMted

AnAdU md S. Dkiclaw d fr, Ik . BtdiaHabeySfaMrt SiieHs JtfteB wlhte rnatioBd BanaiComiiierdaleBaEaaa Banea dd Gofta ri to

SnAtdAaedaiT^amSoaa Bwdt Bnissd Lambert JV. V. Bank TSr Geme b / w i r tsduft ^ Bank CntzwiBer, Kmz. Bw^cnfrCOmseas^

LtaU A>lli^JWlllVr . UM

Bade Lea brtawtioBdLU. BadUjmdWtaad Bank M«s & Hojle NV • B^<rf Tokyo Mnijatioiiat BrndEbauGriirnderBeflam

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Bsnqae Franfaise Ai Coranerce ExUrtear - - 'Bmqna Cfa&dfrda Laxan b o u rg'SrfL- -- BaaqaedenodoeftbeetdeSaez

TTii[i» i Tiiirnimlidiati i TiininTiinij.'T il XbutiuSeaiiiSnmeaSmsse Bj»que de nJnkra Eerop^oune Bariag Brpite i ACtL>

Bayenscte V c rclaabaai: Bw,Stearns£Cb. BerUnerBait Bofi^Ifeurid^inriftaijtfbiterBaftk R&I. IMennStBS

Hil' , - ■ ~ - - 1UM

-OBmnlrQL'- Oiase MaebmUan Capital Martds^mop ‘ - - - OapdMAIaiilii U - - Ogfafi an hBaHfc^K i pdillmw . C1BC

. O I r* - " "-- J LtaM

V h dhi B«fc CoBnaerzbaafe ~Q«pi«deda'BaBqKei:dTavesSssaBenbi,CBI~ ' 'CowpgdeEariv£aDw%Ha«niab' ' OtabaddDBoois

ContyBak Of&BdtaiM<t€oBDKKad OvdftSd»Ptwt Boston (An*)' CrafitfflHtHtt-BaBkwrm

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ndmEnope i •. _ DdbrSekftCo. JtoinorriceOrt&Qnwk PO Barifc ■_ SfflotlteiftOveEKwCeipiafta

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DooisMaSecariaisAaKs - Dresdna-Bsak DnsdEnrdmaLambot Effec tenbad c-Wiriacg ■ Ean mnMi a

Uusw ri 1 AUa^nlkbB

FtntOucago - .Y^btoufioBtlFiBann GranmmsrjwfffidbeZeafaaBiaak AG

HHlSamari &Co,

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AfirofiKtoraa f&nBwr

ffi^nwtBcnsm

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GottmanSadBlBtnMriwdCorp. - -
E.F. Hntfaw Iwtfrnatnraal Inc. IBJ iRenathnd

Kuwait iHlenofiostl hivc^nient Co. sjti.

Loodnd OdtetaQnfiosd SA.

B. Meritor sed. Saha Co. '• Stand MoabgnA Go.

BtadalnUta

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XtasdBs-onte-EtaU
IaznlSnAmACsi

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TtoNIKto Scarifies Co^fEmvpe) Ltd, Nanjontaeraationd NaoUtaMnladestagfe . NonficBaskPLC SdLOpptabcmtj&ACle.

Orian Rayal Bank dstaTaAscbeUnfabttk SSetabtanfioadlti • Kanoa,HdA%£KBsraN.Y. PriffdbnkeaAJS

Unfcn & Bodao- La Bode ft Ot4 Bakers . I- F. RofewMd, Uitobuj, TowMo Sriirfida-, WGudimeyu, flu^ f ft Co. J. Hamy Sch ttdrr WaggftCo.

j Loind

g ^ i di i in^ rTm j f ffifc ff** u«i*m SafibBaney, Hank Uphan £ Cb. Socxtf Gtaoda SodettGberaledeBanqaB&A.

1 •

^seknmSDS. . Sta^TtoMlftpqu . Swnde H nMaa iika Yaebs-ndWostk^i J. Vratobel & Co.

W ntiaatitle l a mWanil Chonetato . - WlgSiB ft Gbrf»,Btak ’StaakHfatarnaftma] (E*Np<9

30

Companies and Markets

; 'Financial Times rThursday . June 3 1982

COMMODITIES AND AGRICULTURE

[Foot and
j mouth in
; W. Germany

BONN — ■ Foot -and -month dis-

case has broken out in the West
t f'ierman Slate of North Rhine*

* Westphalia following recent out*
’ breaks in neighbouring Den-

* mark and East Germany, the
l agricultural authorities said

* here, reports Reuter.

■ -The regional ministry of agri-

* culture said the infection was
; confirmed yesterday in 18 pigs
" in a 78-head herd in the V/up-
° pertal district.

* The veterinary authorities
’ ordered the immediate slaughter

* of all livestock at tile farm oon-

* cerned and sealed off the sur-
rounding area for a radius of
2 kms.

All livestock within a radius
“of 10 kms from the farm will
“ be innoculated against the dis-
ease as soon as rhe precise virus
.. type is established.

The infection is believed to
have come from waste food used
-'.as fodder for the animals, the
! ’ regional official noted.

A federal agriculture ministry
'-'official said in Bonn the Wup-
-.pertitl ouLbrcak was the first
' reported in West Germany since
^ the outbreaks in Denmark and
. East Germany in March this
.. year.

... Hilary Barnes writes from
j_. Copenhagen : Denmark will be
t officially declared free of foot-
; .and-mouth disease on Friday.

IN. Zealand signs
Iamb deal
with Iran

NEW ZEALAND has signed an
£Stira deal to supply Iran with
more than 60,000 tonnes of lamb
this season, but shipments to
the UK will not be affected. NZ
meat producers said in London
yesterday.

The Iranian contract also
includes a reciprocal oil supply
arrangement

Iran is rapidly becoming one
of New Zealand's iargest
customers for lamb, having
bought more than 200.000
tonnes in the last three years.

Britain is still the largest
single customer and will import
about 185.000 tonnes this year,
the centenary of its first ever
frozen shipment to the UK.

Brazil to curb
cocoa output

BY A SPECIAL CORRESPONDENT

RIO • DE JANEIRO — The
Brazilian cocoa authority,
CEPLAC. has bowed to the
reality of world overproduction
and slashed its planting
programme “ Procacau." It
announced in Brasilia that the
production target of 700.000
tonnes a year by 1992, set. when
the programme began in 1977,
had been reduced to 550,000

Production in the crop year
which ends in September is
estimated by the International
Cocoa Council Organisation at
325,000 tonnes.

Dealers in the main cocoa
state. Bahia, were only sup-
prised it had taken CEPLAC so
long to admit its original
figures were over-ambitious. For
most traders even the reduced
target is high in view of the
depressed state of the Brazilian
cocoa industry'.

“We are having .enough
headaches selling 300,000 tonnes
now," said one broker. “It is
all crazy anyway — unless you
can find a way to produce
petroleum from cocoa.”

In Bahia, one of the world's

main cocoa areas, there is very
little Incentive for growers to
plant fresh trees. “I have the
impression that the rate of
abandonment of plantations
could actually be higher than
that of fresh plantings,” said
one exporter.

CEP LAC's decision will not
halt a steady rise in Braztii*9>
production for the next few
years. Cocoa trees can be har-
vested after three to four years
and reach full productivity after
seven. So far 540,000 acres
have already been planted
under the Procacau scheme and
have yet to reach full maturity.

Between now and 1985
another 235,000 acres will be
planted, mainly in the virgin
territories of Roadonia, Para
and Amazonas. However, a fur-
ther planned 335,000 acres has
now been cut from the expan-
sion programme, which involves
financing farmers and encourag-
ing more efficient methods.

• On the London futures
market yesterday September
cocoa fell £5 to a new 11-month
low of £910.50 a tonne.

India to sell rice to Russia

BY K. K. SHARMA IN NEW DELHI

INDIA EXPECTS to export lm
tonnes of rice to Russia and
other countries this year in
spite of a precarious stock of
food grains of less than 12m
tonnes, the minimum con-
sidered safe for buffer stock
purposes.

The Government has decided
also to give a loan of 100,000
tonne* qi wheat to Bangladesh
which is facing an acute food
shortage following three
successive bad crops. The terms
of tbe loan will be determined
later this week.

Russia is the main buyer of
rice because of its own
shortages. Repayment Is
expected to be in the form of
goods, particularly crude oil
and petroleum products.

The Indian Food Department
is closely watching operations
by State agencies to procure
wheat from fanners in the

northern belt which has been
adversely affected ~by
unseasonal rain and hail in the
past few months. So far, pro-
curement is weH below tbe level
of last year, even though the
standards of procurement have
been lowered and discoloured
wheat with a higher moisture
content is being bought from
farmer- offering it

A final decision on whether
India should import wheat this
year will be made in about a
month when procurement for
the season is completed
Traders claim that about 30 per
cent of the wheat crop has been
damaged, but officials say this
is an exagerrated estimate.

However, agriculture officials
do admit that the current
season's output may fall to last
year's level of 36.46m tonnes
fnyn the previously estimated
37.5m.

Sharp drop
in tin
market

,'Bjr- John- Edwards, .
Commodities Editor '

TSCN TKTCES tumbled agaiti
on the London Metal
Exchange yesterday. Gash tin
' closed £205 lower at £&47fl
a tonne and has now lost
some £650 in just over two
weeks.

Tinders said that- the
market was hit by sustained
selling, mainly from specula-
tive sources, and there was
n z sign of support buying by
the buffer stock of the. Inter-
national Tin Council ~It is
believed that the buffer stock
may well be reserving Us

limited resources to protect
the Penang market. Although
Penang.' is well above the
London level at 29.21 -Malay-
sian- dollars per kilo, it is
very close to the “ floor ” price
<s- International Tin

Agree!d<*-2t of SM29.15 which
the buffer stock Is pledged to
defend.

Other metals were also
weaker yesterday- Higher-
grade cash copper fell by £10
to £760.5 a tonne, and cash
nickel was £55 down at
0,900 a tonne In spite of the
International Nickel strike
that started on Monday.

MARKET PROFILE: NICKEL

A strike with little sting

BY TERRY ROYEY

Farmland
prices rise

By Our Commodities Staff
BRITISH FARMLAND prices
moved sharply higher In
April, lifting the February/
April average for vacant
possession land changing
hands in England and Wales
to £4,388 an acre from £3,134
in the January /March quarter.

But the Ministry of Agricul-
ture, which published the
figures yesterday, said the
comparison had been distorted
by an unusually large amount
of upland coming on to the
market in the first three
months of the year. The
weighted price, allowing for
area and size group variations
in the sample, rose from
£3,81 1 a hectare in January/
March to £4,128 in February/
April. This figure was still the
highest since the quarter end-
ing June 1980, however.

FREE MARKET nickel prices
fell yesterday -wiping out gains
ioilowing.the ■ start ■ of - a strike at
International. Nickel's (Inco)
.Sudbury mines in Canada..

. .The failure of the market to
maintain- Tuesday's small in-
crease in response to tirt- start
of - the strike reflects more than
anything els* the decline of
loco's position as market leader
and til e -gross oversupply situa-
tion in the market.

- Such has been the poor state
of the market' that many traders
and producers are hoping for a
4oii'g strike' at Inco.' like that of
1978-79 " Which - lasted almost
nine months. ' This might
reverse the situation' and see
nickel rising "against the
present trend of metal prices.

When the last strike began at
Sudbury in September, 1978.
Inco had the equivalent of
seven months deliveries in
stock. It took five months for
the free market price to rise
above its pre-dispute leveL
When tbe strike finally ended
in June, 1979. prices ranged
from $3.50 to $4.00 per pound
on tbe free market — double the
September, 1978. level. Today
the price has fallen back to
between $2.40 and $2.70 per
pound.

At the start of this strike
Inco -have in. stock . some five
months' worth of deliveries.
Some traders are reasoning that

within three to four months,
should the dispute continue of
course, -the market will begin
io pick up .as fabricators buy in
stories to meet order .book
commitments. The tough stance
currently being taken by the
company is encouraging this
view.

There are signs that it would
be too optimistic'to expect such
a rapid turn-around. The
prinsry uses for nickel — 59 per
cent of all output in 1979 — are
as an alloying element in the
production of most stainless
steels and In low alloy steels.
According to Inco about “60
per cent of all nickel 'goes into
capital goods and 40 per cent
towards consumer durables.”

These figures would suggest
that unless in the .course of tbe
dispute there is a considerable
pick-up in .the economies of the
industrialised world, if could
take some time before the
strike pushes prices back
towards the nnd-1979 levels.

In tbe meantime, while many
producers may find It easier to
sell off some of .their stocks,
they may not be able. to. raise
prices much. With much new
producing capacity situated in
underdeveloped ' countries,
there are many producers will-
ing to sell at below production
cost and official producer prices
in their desperate need for bard
cash revenues.

This applies- to Eastern bloc
States also. Russia ,' is the
world's second largest producer,
and will for much .the same
reason be willing* ; to sell on the
•free market -to -■ meet - any
Western shortfalls. By 1980
exports, from . the . Communist
world had risen' from nothing
to 90m . lb before the mid-
seventies.- •

The long-term problems of
nickel are direct!? related to
the state of the world economy.
New -uses for the metal that
have,: been developed— such as
in desalination plants for tbe
Middle East, tbe nickel-iron cell
for electric cars and recharge-
able batteries — have, been more
than offset by the fall in use
in coins, by the replacement of
bright trim on cars by rubber-
based products, and tbe decline,
of aero-engine production.

A possible use of nickel as
a replacement for tin in the
fanning industry is still in its
research- stages and depends on
its remaining significantly
cheaper than tin.

With production costs esti-
mated by Le Nickel (the third
iargest /producer in tfie West)
at $4 per lb, it is clear that the
la ten tic producers would like to
see . prices, nse to at leant that
level. Pressure on the bett ear-
established sulphide producers
is less because of their lower
energy costs. However the

recent record on prices hay been
poor. 4

. Eighteen months ago Inco set
its price "at $3.45 per Hi,, but
after stiff resistance was obliged
to introduce -■ a .6 per cent
discount m November 1980.
This -discount ' was maintained
up to tiie' summer of 1981. wbed '
in' an attempt to end discounts
Le Nickri abandoned its ' -dis-
count. As a result Le Nickel sold
almost nothing during the third
quarter of 1981 and was forced
to cut prices during the fourth.-

Thus price cutting led to a
downwards tumble with prices
as low as $2.65 being offered by
producers. Inco's latest attempt
to fix an agreed producer price,
of $3.20 per Hi set in April of
t.hk year, has also not worked.
“-Everyone is sealing below- this
price," one producer -com-
mented.

The strike at Inco’s Sudbury
complex and the dec£ston by its
neighbour- Falconbridge (the i
western world’s second largest
producer) tn have an extended
summer shut-down are therefore
being seen as the only “positive - ’
elements in an otherwise gloomy
prospect for she next year or so. -
The fact that a considerable
economic - upturn : ls~ also ' re-,
quired must however mean that '
the length of this dispute should
be comparable with Chat of r
1978/79 if it is to improve
things very much.

Danish farm aid attacked

BY HILARY BARNES IN COPENHAGEN

DANISH farmers’ organisations
have declared a government
programme for aid to agricul-
ture both inadequate and ideo-
logically unacceptable. They
say i> will lead to the gradual
nationalisation of the land.

The minority Social Demo-
cratic government has reached
agreement with the centrist
Radical Party, which has condi-
tional support from the Socia-
list People's Party, which will
be passed through the Folketing
(parliament) within the next
few days, if ail goes according
to plan.

The Government programme
will provide the farmers with

cash help over the next 12
months of about Kr L5bn, but
about two-thirds of this sum is
money which the Government
has earlier agreed to give the
farmers, including Kr 600m
from a negative income tax.

From next new year, the
Government plans to set up a
Land Bank. This will enable
fanners to convert up to
Kr lObn a year in mortgage
debt to first priority mortgages
from the Land Bank. Thtese
will cany a low nominal coupon
of about 5 per cent, but the
value of the mortgage will be
index-linked to the value of the
land.

Talks on manioc quotas

BRUSSELS — Two senior EEC
officials have fiown to Bangkok
for talks later this week on the
operation of Thailand's 5m
tonne quota for manioc sales to
the community in 1982.

1 Up to 5m tonnes can be im-
ported into the EEC at a 6 per
cent import levy, with any
excess amounts liable to the
full levy applicable to cereals.

The EEC officials have had
talks with members of the Cora-
murriiy's cereals trade, who
have been pressing for changes
in the operation of the quota
system. Feedgrarn manufac-
turers have, been arguing for a -
switch in the marketing year in

which the quotas apply from
the present January-December
to August-July. But the idea,
aimed at avoiding difficulties in
the latter months of this year
when , the quota -is expected tn
be exhausted, has been rejected
by the EEC Commission.

Sq far import licences for
around 5.5m tonnes of manioc
from all destinations have been
issued this year against an
overall quota at the fi per cent
levy of 5.96m tonnes. .

This has led to speculation
that the entire quota will be
used up by September or
Octoberv
Reuter

BRITISH COMMODITY MARKETS

BASE METALS

METAL pneas (bII heavily on ihe
London Moia4 Exchange. wirh only
Zinc rcceivno any measure ot support.
olos.no unchanged at MOO S. Tin
reached a low of £6545 before rallying
io c lose at £6590. Copper closed at
£785, Lend was finally £315. Aluminium
£529.5 and Nickel £2965.

"" i a.m. •+• or. p.m.‘“ *■ or
copper 1 Official , -Unofficial; -t

three months £318 02. 18 52. 1B.O.
19.OT. 18 50. IB 00 Kerb: Uur* months
£318 00. 15.00. 14 CO. 14 50. 15.0.
15.50 Turnover: 29.025 tonnes

Aluminium— Morning: throe months

£527.00. 28.50. 28 00, 27.00. 27.50.

Kerb: three months £527 50. 28.00.
29 00. 30.00. Altnrnoon: three months
£529.00. 28. C 3. 29.00, 29.50. 30.00.

30.50. 31.00. 30.50, 30.00. Kerb: three
months £530.50. 30 CO. 29 00. 29.50.

30.. Turnover: 24.625 tonnes.

positions. OW crop wheat was sold to
90p down before making, a slight
recovery whtfo new crops traded within
1 "arr ow r ang e. Ach reports.

WHEAT BARLEY

Yestardys +or Yectrdys +or
Mnth close — . close —

TIN

a m.
Official

+ or D.m. , + or
- Unofficial —1

HlghOr de,

Settlem't
Cathodes
Cash

! £

• £ 1
i

£

£

: 753.6-4

'-24.fi.'

760-1 i

-10

1 779-.S

:-2S .

7B7-.5 :

-10.5

754

|-24.B

- ;

745 .5

-2B |

750-1 !

-12

771.5-3

-24.7:

767-7 ;

-12

746.5

28 •

|

' _ ~~ __

~

*72-79

High Grade £ £ £ i £

Cash 6570-9 -213 6460-60 -205

3 months 6685-90 -230 6580-90 -210

Settlem't 6575 -2is - ;

Standard

Cash 6570-5 -65

3 months 6685-10 —220

Settlem’t 6575 -215

Straits E. —

NewYork -

NICKEL

a-m. + or 1 p.m. + or
Official I — Unofficial; - 1

6460-80 -205
6580 90 -210

Settlem't
U.S. Prod.-

Amatgamated Metal Trading reported
that in the morning high grade cash
coper traded at £753.50. Three months
£777.00. 78.00. 78.50, 77.00. 77.50.

78.00. 78.50. 79.00, 79.50. Cathodes:

Cash £745.00. Ke rb: Higher Grade
Three months £779.00. 79.50. 80.00.

81.00. 82.00. Afternoon: Higher Grade

Three months £776.00. 75.00. 75.50.

62 00. 83.00. 82 50. 83.00. 83 50. B4.C0.

85.00. 85 60. 86.00. 88.50. 87.00. 88 OC.

87.50. 87.00. CaihodBs three months

£770.00. Kerb: Hiqhar Grade three
months £787 00. 86.50. 86 CO. 85 50.
SB. CO. 85 00. 84.50. 64 00. 83 CO. 64.00.

84.50, 85. 00. Turnover: 23.575 tonnes.

Tin— Morning: Standard cash £6580,
70. Three months £6750. 40, 30, 20.
6700. 5680. 90. 80. 85. Kerb- Standard
three months £6680. 73. £0. 50. 20. 23.
10. 66C0. Afternoon: Standard three
months £6590. 80. 70. 63. 50. SQ, 53.
50. 70. 80. 90. aBCO, 65E5. 83. 83.
Kerb: Standard three months £8573.
80. 90. 66CO. 6590. 1.123 tonnes.

Spot. 2890-5 -91.52895-905 -59

3 months: 2930-60 -87.5 2955-60 -92.5

"Nickel— Morning: Throe

months £2993. 83. 80, 4C. 50. S3. 63,
55. 50. Kerb: three months E2S40. 45.
40. Afternoon: three months £2340.
45. 70, 75. 65, 55. Kerb: three months
£2955. Turnover: 726 tonnes
* Cents per pound. * MS per kilo,
t On previous unofficial close.

July „ X 20.60
Sept.- 109.00
Nov... 112.65
Jan...’ 116.80
Mar., j 120.05
May..' 125.75

-0.70
-O.Q3
■— Q.B5

-o.io

■—0.15

-0.10

104.90

■108.45

112.35

115.70

119.05

Tate and Lyle delivery price for
granulated basis white sugar was
£374.00 (same) a tonne fob (or home
trade and £2C8.00 (£209.00) for export.

International Sugar Agreement (U.S.
cents per pound) (ob and stowed
Caribbean ports. Prices for June 1;
Daily mica 7.26 (7.66): 15-day average
7.88 (7.96).

PRICE CHANGES GOLD MARKETS

In tonnes unless otherwise stated.

COTTON

June 2
1983

+ or

Month

■go

SILVER

ZINC

a.m.

Official

+ or. plm. + or
— lUnofficial —7

LEAD

a.m. + on *.m.
Official - 'Unofficial

+ or
— t

£ • £ j £

£ -

Cash ' 305-.5 , — 5. 12.

3 months 316.5-7 -3
Settlem't 305.5 - 1.76

304-5 -3.25

316-7 .-2.75

£ £ r £ • £

Cash 402.5 3-3 404.5-5.5 -.5

3 months 407.5-8 -S.87. 410.6 -1.25
S'ment... 1 403 -S — ; .. ..
Primw’ts _ ..... < *36-37.75| ... _

Zinc — Morning: Cash £40J 50. C3.C3.

02.50. 02 00. Three months C4D7 CO.

07.50. OS. CO. 7.5 Kerb: three months

£417.50, C7 QQ. Afternoon: three
months £437 00. 09 03. 10 00. 11 00.
12.00. 13.00. 12.C0. 09.00. 09 50. I?9.00.
08 00. 09 03. 10. CO. Kerb: three

months £410 00. 09.C9. 09.50, 10.00.
Turnover: 18.625 tonnes,

. , | :
Aiuminm, a.m. j+or p.m. + or
Official > — 'Unofficial — t

Silver fell 7p an ounce to 334. 3p for
spot delivery in the London bullion
market yesterday. U.S. cent equiva-
lents of the fixing levels were: Spot
597c. down 12.6c. three-month 678.6s.
down 13.2c; six-month 639c: down
14.2c: and 12-month B83c. down 14c
The mataf opened at 333-36p (5S3-
5ES;). and closed at 338-341p (EC3-
609c).

SILVER

par

troy oz.

Bullion

fixing

price

+ or

LM.E. i
p.m. i
UnofflcT

+ or

Lead— Morning: Cash £305 00. Three
monrhs CJ12.00. 13.00. 14 CO. 15.G0,
14 00. 14 50. 15 00. 16.ro. 16.60. Kerb:
three months £316.50. 17.00. Afternoon:

1 ■ —

■ £ ' £ ' £ £

Spot 507.5 8 -10.2 509.5-10.5-5.5

3 months 527.5-6 ,—11; 5S0-.5 -6.75

INDICES

DOW JONES

FINANCIAL TIMES

Dow'i "June | - May _ lMorith ; YeaF
Jones | 1 | 2B i ago | ago

June 1 ;May 28 Month agojYear ago

234.17 237.39 1 244.79 | 250.79
(Base: July 1 1352-100)

Spot I 123.15:124.83 125.85. -
Futr's! 123. 73 127. 40 1129.16! -
(Base: December 31 lS74 n 100)

MOODY'S

REUTERS

June - 1 May 28 Month ag'oj Yearago

June 2 . June l 7 M'nth a'goYaarago

990.2 1000.3'. 1093.2 ' 1093.2

1517.6.1530.1. 1601.3 1731.0

( December 31 1931 = 100)

(Base: September 18 1931 *=100)

Spot 344.90p , —7.00. 539.00ptl.25

3 months. 545.60p .-7.60, 349.75p-tl.00
6 months. ,355. 20p -8.70: -

12 mon ths 577. 35p -E.QQ _ I

UftE— Turnover 63 ~ (56) ' lots “of
10.000 ozs. Morning: Three months
346.0, 47.0. 46.5. Kerb: Three months
347 0. Afternoon: Three months 343.5,
50 0. Kerb: Three months 343.0.

-OJ1S

jfO.06

Business done — Wheat; July 120.70-
120.40. Sept 109. 00-108. SO, Nov 112.80-
112.50. Jan 1t0.6O-116.45. March 120.10-
120.00. May 123.85-123.70. Safea: 174
fats of 100 tonnes. Barley: Sept 104.90
only. Nov 1C8 50-108.45. Jan no trades.
March no trades. May 123.85-1 23.70.
Sales- 89 lots nr 109 tonnes.

LONDON GRAINS— Wheat: U.S. Dark
NorThem Spring No. 1. 14 per cent:
June 110.50, July 110.25. Aug 109.50
transhipment East Coast sekers.
English Feed, fob: Jan/March 121.75,
Apnl/June 127.25 East Coast paid.
Maize: French 1st half June 136 tran-
shipmant East Coast. S. African White/
YeHow Junc/July 85.00. Barley: Engfish
Feed lob Aug 106.50 East Coast. Rest
unquoted.

HGCA— Locational ex-farm spot
prices. Other mil I ink wheat: N. East
123.C3. Feed barley: Eastern 1C9.70.
Scotland 111.80. The UK Monetary
Coefficient for iho week beginning
Monday June 7 is expected to remain
unchanged.

LIVERPOOL— Spot and shipment Betas
amounted to 60 tonnes. A drop in
prices, .after the firm lane, deterred cus-
tomer* from extending engagements.
Few orders were placed, and t he de-
mand consisted of smalt packets of
intero&t «n specialist Middle Eastern
qualities.

JUTE

RUBBER

COCOA

The London physical market opened
slightly easier, collapsed on commission
house selling and dosed on an easier
note. Lewis and Peat ror.orded a .June
in bprice for No. J F?S5 in Kuafa
Lumpur ol — (2C6.0) cents a kg and
SMR 20 — (179.5).

JUTE — C and f Dundee BWC £288.
BWD £243, BTB £329. BTC £290. BTD
£246: Antwerp c and I BWC £289. BWD
£244. BTB £330. BTC £291. BTD £247;
c end i Dundee June 43 in 10 oz £11. Cl,
40 in 74 oz £8.41; B Twills £33.43.

WOOL FUTURES

LONDON NEW ZEALAND CPOSS-
BREDS — Close (in order: buyer, seller,
business). New Zealand cents per kg.
Aug 381. 382. 382-381; Oct 397. 398.
396; Dec 403. 4C7. 402; Jan 404. 407,
ml: March 415. 417, 414-413; May 424,
427. 423; Aug 433. 43B. 434; Oct 436,
438. mi; Dec 440. 443, 442. Soles: 44.

SYDNEY GREASY WOOL— Close [m
older: buyer, seller, business). Aust-
ralian cents per kg. July 552 0. 554.0.
552.0-549.5; Oct 528.5. 529.0. 629.0: Dec

534.0, 535.0, 535.0; March 538.0. 539.0,
539.0: May 542.5. 543.0, 543.0-542 0;
July 548.0. 549.0. 548.0; Oct 546.0.

543.0, umraded: Dec 548.0, 553 0. un-
traded. Sales: 84.

I j .1

Metals j

Aluminium £810iBl6 XBIIIr815

FraeMkt. '5928/936-80 |i#8fi/1016

Copper I

Cash h grade... £760.5 -10 !£873.5

3 mths £787.35 -10.5E903 .25

Cash Cathode- £750.5 -12 £866

3 mths £776.5 -15 £896.6

Gold troy or. .. S320.B76+2.7S '8336,5

Load Cash '*304.5 -3JS-£324

3 mths. £316.5 —2.75 £337.25

Nickel *3922 l £3986

Free mkt» 230r266c -5 |2S9/269e

. < i

Ptatln'mtroz'y£260 £260

Freemkt £159.10 , + 0.05 £176.15

OulGksilverf ... 3360.570 8370/300

Silver troy oz... 334. 90r —7.0 37S.70p

3 mths. „.345.60» .-7.6 391.05p

Tin Cash .-£6470 -205 £7 145

3 mths £6585 ,-210 27322.5

TungstsnZ2J]|b:5 109.01 ; 5106.98

Gold rose 82} in the London
bullion market yesterday, to
close at S320i-3214. Tbis was
tbe highest level of fflie day.
reacting to tbe decline of the
dollar, in the afternoon. It
opened at the day’s low of $315-
S3I5f, and' was fixed at $316.80
in the morning, and $318.50.

In Paris the 121' kilo gold bar
was fixed at FFr 64,250 per kilo
($321.59 per ounce) in the after-
noon. compared with FFr 64^50
(320.51) in the morning, and
FFr 63,750 (S320.97) Tuesday
afternoon. .

In Frankfurt the 12| kilo bar
was fixed at DM 24,395 per kilo
($318.02 per ounce), against
DM 24,325 ($321.01) previously,

and closed at $318-319* compared
with S31SJ-319*.- ...

.In. Luxembourg the. 12} kiln
har was fixed at ttie equivalent
off $316.30 per dunce.

In Zurich gold finished i un-
changed at $317-320.- J

LONDON FUTURES

August

Septfmb’r!

October...,

November,

December

Turnover:
UQV ozs.

; £ par troy i
ounce I

182.2S.2.»'-+0.9HJ(

im.um.ss^moo!

186.90-6.40;+ 1J5tt
187.60-B.8fl-t-1.I76 1
188.50-3 .58' f 0.458

182.70-0. BO
182.40
1B6.fiB-B.1D
1B6.78
189.70 7.50

536 (744) lots of 100

June 2

June 1

1—2,5 1 6495
! 6680

I I i •

i 15507.5

i— 3 8335

:-6 18274.

POTATOES

Futures continued ro ease as trade
hnucD selling pushed prices M new
contract lows. Offtake among manu-
facturers remained negligible while
doubts over the cocoa jgraement per-
S’Sted . reports Gill and DuHus.

Yest'dey ■' Vor : Business
dose

No. 1
R.5.S.

Yoet’r'ys

close

Previous

close

Business

Done

COCOA

Done

July. — ! 883-84 —7.0 • 888-80

Sept. • 910-11 '—5 JQ : 915-05

Dec : 947-48 1—8.5 ! 954-42

March ! 980-83 1 — SvO : 987-78

May 1006-07 '—9.0 I 1010 05

July ' 1030-31 -8.5 : 1035-30

Sept ........ 1045-55 -6.3 -

Sales; 1.783 (3.E23) lots of 10 tannas.

ICCO— Daily price tor June 2: 71 .C8
(71.48J. Indicator pnea for June 3:
73.25 (74.14).

COFFEE

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^ Helping you stavaheadL

Commission house selling in light
volume prompted small imcal fosses,
reports Drexel Burnham Lambert!
Prices remained under pressure before
a steady New York market inspired a
gradual rocoveiy.

Yesterday's

COFFEE ' Close + or -Business
i Dona

July ; 85.70 54.00 65.70-65.90 58.80-55.10

Aug 53.70-64.10; 66.70 5B. ID 55.60

Jly-Sept 1 55.80-64.00 55.70-55.90 56.60.b3.50
Oat-Dec 55.20 55.50 56.90 57.00 66.70-64.50
Jsui-Mari 57.40-57.50 66.60 59.10 68.90-56.70
Apf-Jnel 69.40-59.60 60.80-60.90' 60.60-69.20
Jly-Sept 67.50-61.40 G2.70-82.B0> 62.50-61.50
Oot-Dacl 65.50-63.40; 64.70-64.90 64.66-65.00
J'n-Mch i 65.20-65.30 66.30-66 JO > B6.5D-65J20

Sales: 807 (88) lots "of 15 ' tonnes.
3 (5) lots of 5 tonens;

Physical closing prices (buyers)
were: Spot 52.5Cp (54.50p); July S1.75p
(52.75p): Aug 52.50p (53.50p).

SOYABEAN MEAL

The mjrkei opened shghty easier
and found commercial support, reports
T. G. Roddiclc. Increases w consumer
cash demand stead.cd prices

Yesterdys+ or
Close —

Business

Done

£ per tonne

July „...•

Sept- !

Nov ;

January

March...

May

July

1199-02
1142-43
1101-04
103094
1070-90
1065-85
1045 80

It 13.0; 1205- 7 1
+ 18.0 1147-15
'+ 13. D 1109-80
+ 14.01090-73
; + 17.0. -

i+20.0' -

. -r 17.5 - .

IS f. 70-51.50
150.80-50,50
151.70-51.40

153.60

y° 3 ‘ 13,538) lots of 5 tonnes.

ICO Indicator prices lor June 1
(U.S. cents por pound): Comp dady
1979 123.35 (122.54); 15-day sverne
11979 (119 86). d

GAS OIL FUTURES

The market opened weaker following
a fomt-down close m Now York. Con-
tinued long liquidation end the
eetefafisfong o( new short positions

loft tnB market lower until a hern-
covering caused the market to ratty,
reports Premier Man

. ; £

;per tonne.

June ! 131.50-5 1.7 — 0.25

August i 130.60-50.8 -0.05

October... ,.i UI.70-52J) -0.15

Deo ! 154.50 56.0 4 0.d0

Feb ; I57.6D-59.0

Ap ril J 59.00-4 M) + 4.6D_

Seles: 162 lots "of ICOlonriis.
SOYABEAN OlU-Tha market ooensd
weaker. Where nhart-covgr-fig and
light commission house buying was
evkfflnt prices ralLod. Closing prices
and business dona (U5S per tonne):
June 5C0.OT-1C.99. untraded: Au>i
473 n-SCT.OO. 509 C0.437.C0; Oct 531 CO-
01 50. 5T5 M-A99.0C. Dos 5ra.CD-C8.50,
533.00-06 CD: Feb S17.C0-14.CC. un-
trsdod; Aofd 513 00-16 03. 516.00: Juno
515 CD- 25.00. untraded Turnover; 1G2
(69) lots of 25 tonnes.

LONDON POTATO FUTURES— After
e steadier opening strong soiling in a
quirt market moved ail positions down,
before - a rally on light ptoht-taking
raised values slightly, reports Coley
and Harper. Closing prices: Nov 65.00,
-1.00 (High 66.50. low 64.50): Feb
74 70. —0.30 (High 70.00, low 74.10):
April 84.60. -0.70 (High 86.20. low
84.10); May 95.50. -1.10 (High 98.00,
law 95.0Q). Turnover: 215 (230) lota
ol 40 tonnes.

+

HIDES— Leeds: A weaker tendency
prevailed. Second clears. Ox:
31-3S.5 kg, 58.5p a kg (58.6p):
26-30.5 kg. 63 Op a kg (65.8p):
22-25.5 kq. 70. Op a kg withdrawn
(73.4). Light cows: 25.5 kg. 58.8p a kg
(68 3p).

A

GRIMSBY FISH— Supply good, de-
mand fur Prices ot ship's side (un-
processed) per atone: Shelf cod £4.50-
E5.40. codlings £3.00-£4.00; large had-
dock C3.50-C4.50. medium E2 90-C3.80,
small £2.20- £2.30: large plaica £7.00,
medium 13.50-13 80. best smaK £3.30-
£3.70: skinned dogfish, large. £6.50-
£7,00; medium, £3. 00- £4. 50; lemon sates,
large. 8.50: medium. 7 00; rock fish
Cl. 40-El .80: sat the E2.00-E3.00.

Wolf rmtt.4Nba SW3U1S I iSIOSillO

Zinc Cash £405 - 0.5 £421.75

3 mths £410.25 )-liS;£425.5

Producers.... 0860/900;......'... (BU/BBO

Oils

Coconut (Phil) '54S5u

Groundnut :

Linseed Crudei£380
Palm Malayan S510
Seeds

Copra Ph lip ... 63B5w
Soyabean tfi.S- j , S3 57
Grains i

BarleyFut. Sep£104.90 '£104.40

Maize ,£136,00 -l i i

Wheat Fut-Sop £109.00 —O.O&'fil 24.40
NoJHardWintl j : / t

Other i ;

commodities 1

Cocoa ahip't* 41936 -5 '£994

Future Sopt £910.5 |-5 £973.5

Cor fee Ft’ Sept ,£1142.5 +18 £1150.5
Cotton A.lndex:7fi.80c --0.76,76.45c
Gas Oil July.... (5287.75 -4.75 1287.5
Rubber ikllc;...j£2.5p —2 56p

Sugar (Rawj.... l£103u —1 £119 -

Woolf ps 64s kl.|597p kilo 402pklfo

t Unquoted. u June-JuVy. w May-
June. yJidy. t Per 76ib flask.
'Ghana cocoa, n Nonunaf. §SaMw.

Gold Bullion (fine ounce)

Close £3201* 321 U (£179-179ls) 3317S 4 -31Bls

Opening-.'. ,S316-31S«* . (£176'e L77> «319&*-320li

Morning fixing.. 1316.80 (£177.499) -S319

-Afternoon fixing., 1318.60 (£178.391) '>6318.75

Gold Colne

Krugerrand 3329 i 4 -530^
1i2 Krugerrand... 616934.17014
li4 Krugerrand... S86ii-87ia
1/ ID Krugerrand.. 335 ft -36 ft

Maptoleal S329V530J 4

New Sovereigns. '677 ft -7714
King Sovereigns. 690i« -92

Victoria Save iI90ft-92

French 20s 'S71-73I?

SO pesos Mexico (593 ft. 396 ft
100 Cor. Austria. '*3 14-3 16 ft
520 Eagles IS416-421

f£183V184ft) 63271* 32814
(£9414-95 ft .S168li-169 In
(£48 1« -4814 1 S85»4-863«

(£19V20ft> 635-36

(£1831* -184 ft) S3B7ft-3B8ft
(£43-43 111 .S76V77U

i£&0ft-5ii : s90>?-ga -
i£50ft-61j 890 ft -92

t£39 ft-41i S59ft-69ft
(£2 19 ft-221) >6390-3921; •
(£176-176ftj ’83 11 ft. 513ft
<£232-234fti ,6416-421

(£178- 167ft)
icna-viBft)
(£ 178.093j
(£178-232)

(£183ft-163ft
(£94 ft -94 ft)
(£48 -48 ft)'

(£19ft-20ft)
l£183ft-l83fti
(£43-43 ft)
(£5013-51)
<£50ft-51)
(£33 ft -38ft >
l£218ft-21Bft)
c£174>4-275>ci
(£258 ft -23 5ft

AMERICAN MARKETS

Apples — Froocfi: Golden Ddideui 9 kg
4.80-5.20, IB kg 8.00-11,00; Tasmaman; .
Golden Delicious 12.00, Jonathan 11.00-
11-50. Granny Smith 10.50-11.00. Slur*
mar Pbrppins 1Z00-12.30; New Zealand:
Rad Delicious 11.00-12.03, Granny Smith
11.CO-11.50. Slurmara 11.50-12.00;
Chilean; 18 kg Granny Smith 10.00-
11.00; S. African: Granny Smith 10.60-
11.53, Gofoon Delicious 12.00-13.00,
Stafkcrimson 11.03-12.00: U.S.; 18 kg
Red DaiiciDus 9.00-14.00. Pears — S.
Afncan: 15 kg Packham's Triumph
12J30-13.50: Chiteen: Packham’s Triumph
20 kg 15.00: Italian: per pound Paasa-
crassana 0 IB-0.18. Paachea— SorTnish:
3.00-7.00. Grapes— *S. African; Sarirnka
5.00. Aftneria 8.00; Israeli: Periatte
7.20; Cinlaan: 6 kg Thompson 10-00.

NEW YORK. Jurro 2.
PRECIOUS METALS and copper rallied
on short covering and profit taking. The
livestock complex coHapaed again es
nearby -pork betiiaa locked limit-down.
Coffee rallied an technical -ays tam buy-
ing and coRHnisaion house Interest.
Cotton Rmahed moderately high ej on
light miH pricing. Heating oil sold off
shghtiy on further trade and technical
seeing, reported HeinoM.

Capper— June 62.CS (60.7D), July

82.65-82.75 (61.50), Aug 63.50. Sept
64 30-64.50. Dec 68.80. Jen 67.5ff. March
®.10, May 70.B, July 72.25. Sept 74.00-
74.20. Dec 76.20. Jan 76.95, March
78.50.

•Gold— June 320.0-320.6 (317.4).' J«fy
32.9 (320.2). Aug 326.0-326.8. Oct
333.3-334.0. Dec 340.5-341.5, Feb 348.5.
April 356.0. June 383.6. Aug 371.3,
Oct 379.1, Dec 387.0. Feb 335.0. April
403.1.

Potatoes (round whiten)— Nov 77.2
(78-4). Fob 87.7 (B7.3). March 87 J-
88.5. April 98.9-99.3. Sales: 230.
,‘BSilvor — June 60.50 (602.01. Jtrfy

610.0- 612.0 (608.0). Aug 819.0. . Sapt

625.0- 627.5. Dbc 647.5-650.0. Jan 656.9,
March 674.0, May B88.0. July 702.5.

MEAT/ VEGETABLES 5? $5 =* *E SSrrJSSi ■

Nov B«0ft641. JJn 8S5-835 1 *, March
670ft-671. Iljlay B83 1 !, July 693V
liSoyabean Meal-^July 1B2.B.I83 0
(181.3). Aug 184.0-184.2 (182.4), Sept
185.5-185.2. Oct 180.5. Dec 190.S-190 4.
Jan 192.5-193.0, March 195.5-T96.5.
May 201.0. July 203.5-2D5.0.

Soyabean OH — July 19.12-19-09"
(18.82),. Aug 19.5P-19.38 (19.13). Sept
19.60. Oct 19.75. Doc 20.10. Jan 20.35.

21*35 21 46 ^ MBy 2, - 05 - 21 - , °* 'J«*y
t Wheat— July 347V 347 (3471),

Sept 362-381 ft (361ft), Dec 382. -March
397ft, May 403, July 401ft.

WINNIPEG. June 2

, 1Z6.00 (V2B.10). Oct

1WM { 2 80} - Dflc 12^.00, March

All cents par pound ex-warohousc
unless otherwise stated. * S per -tro«
ounce. X Cents per troy mince'

** c *" ts . P* r 56-Jb bushel f Cem<»
rlr hUB B £U * DOr ah'''! 1 fon

ks'i b> , ,r*, SCen - oer "’Gins t?"
S’* per -l.oco sq it. * Cenra
aozon. tt* per metric ton.

Monday’s closing prices •

SUGAR

Month

a astday-a+ori

telosa

Business

Done

June

July _....|

August |

Sept. ■

Oct. 1

N0V..„ I

Dec. ......i

Jan

Feb •

SU.S.
per tonne'
290-85
287.75

287.75

2BB.00

269.75

291.50
293.00

394.50
295.60

— 4.7BI28B J1DB6.60
.—4.DQ 2fl8^D-8a^0
-5.W2BBJ0-BB.0fl
—5 J6 2B9.M-87.7B
— B.M 29D.M
-4.M -

•-5.50 -

- '.00

'Turnover: Z4>76~ ’(1.443) lo'S’ "of I'CD
tonnes.

GRAINS

The market opened 50p down on
July when and unchanged afl other

LONDON DAILY PRIC^— Raw sugar
□03.03 (£104.00) a tonne Cif June- July
shipment. Wh»te sugar duly prico
£130.09 (£133.00).

Trade soiling al the opening forced
buyers to retreat and die market
touched the previous contract lows.
A hitjhar then expected Now York pro-
duced a barter tone and all fossag
were erased, reportg C. Czsrnticow.

I l

No. 4 .Yesterday Previous ‘ Buslnau

Ccn- ■ dose ; close 1 done

tract > 1

£ per tonne

Aug ;ilflJI)-10JD IM.TS-aajH] llfl.75.08.fifl

Oot.....| H4.Q6- 14. ID 1 12.80 12.90 114 JiO 12.75

Jan II20.W 21.00 llS.OO JD.Da -

Maroh , !27.4fl 27.50.126. 10 26.15 128.00 25,75
May,.. .150.00 30.25 12fl.76-29.00 1M.5HZB.75
Aug„_. 132.75-34.26 132. 00-33 JID 733.76

Odt-«... 165,00 SE.OO lfio.0D-3e.tl0 -

~Sale3:"3,033 (3j565) iota of 5o tonnes'.

SMITHFIELD— Pence par pound. Beef:
Scotch killed aides 80.7 to BB 3: Ukstsr
himfouaneis 95 .B \o 101 . 0 . loroquaners
58 8 to 80 0- Veal; Dutch . hinds and
. ends 119.0 to 124.0. Lamb: Enghsh
small 75 0 la 82 0. medium 76.0 to
82.0, heavy 70.0 to 74.0:' Imported—
New Zealand PL 62.8 to 64.3. PM €2.0
W 62.5. PX 61.5 to 63.0. YL 60.0 to
61.5. Pork: English, under 100 <b 37 0
tn 53.0, ICO- 120 lb 4B.0 to 53.0. 123-
16,1 lb 42.2 Io 50.0.

MEAT COMMISSION— Average Fat-
stock prices at representative markets.
GB— Cattle 101. 08p per kg tor (+0.20)
GB— Sheep 171 .52p per kg est dew
( — 1 .65). GB— Pigs 71.70p par kg' tor
(-1-38)..

In tonnes unleti otherwtsa stated.
COVENT GARDEN— Prices for the
bulk of produce, m sterling par pack-
age except whore otherwise stated.
Imported Produce: Oranges— Cypriot:
15 kg Valencia Lates 3.20-6.50: Jaffa:
20 kg Valencia Late* 56 6.25, 80 6.25,
75 6.25. 88 5.85, 105 B.50, IS 4.85, ■
144 4 SO. 168 4.50: Moroccan: 16 kg
Valencia Laws 48/113 3.80-7.00: Spania:
Valencia Latte 6.00-6.40; Outspan:
Navels 40 5 25. 4B 5.25, 56 5.80, 72
5.55. 88 4.85. 112 4.2S, 138 3.60, ISO
3 30. Lemons — Spartiat treys 5 kg 40/
50 1.40-1 80; Jaffa: 16 kg SQ/1Z3 3.20-
4.0: Outspanr 15ft kg 80/180 4.50-6.40:
Italian: 100/120 3.50-4.00. Grapefruit—
U.S.: 16/17 kg, Florida Ruby 8.89-9.00:
Cypriot: small canons 17 kq 3.20-5.00:
Jaffa; 20 kg 27 4.25. 32 4.45, 38 4 55.
40 4.90. 48 5.25, 56 5.30, 64 6.15, 75
4.95. 88 4.00: S. Africa n: ZJ 4.10, 32
4.30. 36 4 45, 40 4.80. 48 4.80. 56 4 95,
64 4.65, 72 d.aO-Auby same M White,

fitbier 5.50-6.00.

English Produce: Potatoes — Per 55 lb,
white 5.00. rad 4 80-5.50, King Edwatda
5.00-5.50, par pound new 0.17-0.19.
Mushrooms— Par pound, open 0.50-0 JiO.
closed 0.60-0.80. Apple*— Per pound.
Bromley 0.20-0.34. Lattutav— Par 12.
round 0.60-1 60, Cos 10's 2.0. Webb's
2 00. Onions — Per 55 lb 40/BOmm 3.C5- .

4.50. Spring Onions— Per bunch 0.12-
0.14. Spring Cabbage — Par 23 lb 1.50-
2.00. Carrots — Per 26-28 lb 2 00-3.00.
Beetroots— Par 28 lb. round 100-1.20,
tonp 1.20. Rhubarb— Par pound, oul-
door 0.07-A.gl Loefcs— Per 10 lb i.3»-

1.50. Cucumbers — Per package 2.87- •

3.40. Groena— Por 30 ib Koni 1.50-2.00.
Tomatoes — Per 12-Ib box D/E 3 40J.sn..
CaulHIowers— Per 12. Kent 5.C0-6.C0.
Lincoln 1.00-2.0Q. Asparagus— Per ■

pound 0.60-1.30. Strawberries — Par
8 oz 0.30-0.60. 4 oz 0.20-0.35. Rasp-
berries — Per 4-oz pack 0.60-0.80. Celery
—Per 12/30 2.60-3.50. BraadBeans—
Per pound 0.22.

763.2. Handy and Harman button *oot-
605.50 (603.00).

July 133F7-

J, 34 0 ?--* !?•?>. Sept 125.80 (128.52).
Sugor— No. it: July 7.B0-7.62 (7.46), ° BC ’21 10-121.20. March 117 25-T17.W.
Sept 7.8* (7 .78), Oct 7.98-7.99. J« “S' rt5.0MY7.t». Sales: 3.1(59
8 50, March 8.10-3,12. May 9.32-9J3, „ Juice— July 114.50-114

July 9.43-9.62. Sapt 9.51-3.70, Oct 8JB- l, 7 I,7 «?-117.70 (12\S0‘.

9.90. Nov 719 80. Jen 121.80. March ITS".

, 1^00-125.20. July 125.50 I’" " •
| 0 f C 1 ?«-’28-50.-/(ov 129X0*-:
Sales: 1,200.

• CHICAGO.

Chicago I mm Gold— June 31”

CHICAGD. June 2.

Laril— Chicago loose 23.50 (same).

Uve Cattfo— June 71 .55 r72.77J, Oct
61.60-6165 (66.57). D«c 61.60-61.50,

Fflh 6O.8D.50.80, April 60.60. J un o 61 JO. _

Live Hogs— June 60.50-60.40 (61.52),- f 3223 !- Sepi 327.0-327.4 ( 2 ~:
July 59.83-59.65 (&t.15). Aug 59.30, 337.5-337.1, March 348.3, Jiji

Qci 55.97. Dec 56.17. Feb 53.95. Aflnl 5ept 3? C-6.

50.40. June 51.97, July 51.95.

MMalao-July Z71ft-Z71 (270ft), Sept
Maroh

2&2ft May 302. July 309ft.

Pork Baffiaa-Ouiy 81.27 (83.27), Aug
79.47 (81 47). Feb 74.90-74.75.

UK sugar output

73.47 (8147). Fob 74.90-74.75, March mntr _ ' j

^.00. May 75.00, My 75.25, aJ fll2y lOp (JllOtR

EUROPEAN MARKETS

ROTTERDAM. June 2. .

Main — (U.S. S per tonne); U.S.
No. 3 Yellow; Afloat 131.50. May 131,-
June 128.50, July 128.75. Aug 127.50,
Sept 127.50. On-Dec 128, Jan-Mareh
138 setters.

Soyabeans— (U.S. $ per tonne), U.S.
No. 2 Yellow, GuUporia: Jiino 2Sl. July
»2.23. Aug 254.25, Sepi 255.25, Oct
250.50. Nov 250.50. -Dec 255.60. Jan
291.20, Fob 263. March 268 BO eeUoit.

Soyameal — (U.S. S per lonne): 44
per cent: July 222.50. Jurw-Sepi 223.60,
Nov/Merch 234 traded: Afloat 227, July

a™ Pi Commissiem y^feniay

Aug 5S4-833ft. (627), Sept 635-634V; authorised Hie ejCROTt <rf 32 S50

tonnes of white- sugar at ’ its
regular weekly,, tender in
Brussels. Qf this total 27,250
twmes was qf new series sugar
at a maximum rebate of 31.366
European currency units and the
ECDs° ld series . . su e ar ^ 32.442

MeanwWle the' executive
Corporation said, tills year's UK
crop could well exceed its EEC
quote.- at. 1.14m tonnes white

224, Aug 224.50. Sapt 227. Oct 229.
Nov/Maroh 234 sBliars. Pa9»u Brazil:

JUM/Sept. 235.50, Nov/
March 253 sailers.

t ' FFr par 100 3M-

10C0. Sepi 1033-1049, Dec 1080-‘l090
Ki 13 ^' 40, ' 155-1165. July

1185-1193. S«pt 1210-1220. Sales al
•call: nil.

Sugar-fFJV per tonne): Ju'y 142?/

1438. Ade' 1A30/142S. Oct 1791/1477,

Nov 1390/ 1400. osc i«5/i4iS7 Mar va ^ ue ' BSC wits pushing- hard to

31

y. Jmif

Financial Times .Thursday June. 3 1982

NOISE IN BRITISH INDUSTRY

record & .

Pn ^V

aiowi,.

,^re%«* aa Per * ; -
^Uce ^

wwwni *

ie wuttms'r

S"?. Z&

3oth(nc riii r :' ^b'-

?ncGS dur: n ^ ?* 4
Price ca,*..,

* rd * Jcfl h

» S-.65 h*'* i

a -«e.-<f D : d ’ ev sit

* !*r ft L'^-S
^ V *:s«; :*>
°«e s- ^; ir . n :S

. ° ne

n In«, *

* •> ,i,.. ./ *fc

rt, f fslwnnij.'V

»• t. *

r* Shtll-ij lV ~ .. %

las in a- fv-

1 for ..'..^'^s*
«■ Th« V ;’

»c ,, J ' %

h-v.,v iu ' ^
!lh "-Tn
ip*rah; e v
if i-

ery ns’y.'p ^ •

; quotas

Hr ;-" '
- svosti::.^ '

Removing the ‘occupational hazard 9 of deafness

f^xpoaiRETomisEml

MAHUraCTURING IliDUSTRY

BY RAYMOND SNODDY

EARLIER' THIS year Mr Ron
Leighton, Labour MP for New-
ham. NE: introduced his Indus-
trial Deafness Bill in the House-
:o£ Commons. This short Bill
-wouldr at a stroke, -have
.widened the -definition of the
-grounds- for industrial deafness*
.fixed maximum levels of expo-,
sure to noise and set six months
in prison for directors of com-
panies who ignored fines and
'failed to take remedial action.

Mr Leighton's legislative
hopes, however, were' dead
before . the clauses were
arranged on paper because he
drew 16th place in the lottery
for private members 1 Bills.

- However, Mr Leighton had
a' special reason for making his
parliamentary gesture and in
his efforts to do more to pro-
tect an estimated 2m British
workers who face some degree
of hearing loss because of in-
dustrial noise. As a young man
his. hearing was damaged while
working on the presses of Fleet
Street long before the dangers
of noise were widely appre-
ciated. Now he tends to avoid
large, social gatherings because
he finds it very difficult to hear
what people are saying. -

The cost of noise-induced
hearing loss is great in terms
of human suffering. The effects
of years of working in a ship-
yard, drop forge, textile mill or
even bottling plant without pro-
tection can silence a dawn
chorus, limit appreciation of

music or lead to increasing
social isolation as coping with
conversation . becomes difficult
•- - It is also becoming increas-
ingly costly for employers. Such
hearing loss is now the single
largest -cause of industrial:
injury claims and Lord Justice
Lawton, in a recent appeal in
which damages were raised
from £3,250 to £4^00, warned
that hearing loss cases, once a
trickle, could become a flood.

■ Harlaad and Wolff, the state-
owned Belfast shipyard has set
aside £lL5m to meet hearing
compensation . claims and has
already paid out £6.5m.

Bat, slowly, official actios is
being taken which could soon
lead to greater protection for
the ears of Britain's workers.
Negotiations are continuing to
prepare an BBC directive on
noise in industry.

In Britain evidence submitted
in response to the Health and
Safety Commission's consulta-
tive document. Protection of
Hearing at Work* is now being
assessed. New regulations
placing additional responsibili-
ties on employers could become
law by next year. They would
extend and make more specific
the general duties already exist-
ing under the Health and Safety
at Work Act 1974:

The proposals set 90 dB (A) —
a level at which conversations
have to he conducted in shouts
—as the action level. (dB(A) is
a decibel measurement aver-

COMPANY NOTICES

OESTERREICHESCHE ALPINE
MONTANG E5ELLSCHAFT
(YOST-ALPINE)

Bonds of 1915 Due 1985
5}%

SUJS. 12,000.000
12th Drawing by lot of
May 14th, 1982

Tin* Holders of the ■bowcmentloncd
bonds are hereby Informed Uut this
roar's redemption Instalment of
SUJI.S72.000 maturing June 15, T982
.has been . partially -effected .by repur.
chase in the market and partially by
drawing by lot.

Amount repurchased: SU.S.729.000
Amount drawn: SU.S-243.aon

The following band number* have
bowi drawn by lor hi the presence of
■ notary public:

Denominations of tlh5.1JXH)t

1370-1390 1399-1404

1471 1473 1477.

Denomination* of SU3JSO

94B9~fl518
981 B

9 864-9 BBS
9 89 5-989 B
10333

10531-10533

10554-10558

10053-10871

10885-10696

11097-11008 -

11352-11808..

9719-9816
9834-9859
. 9881-9892
-9907-9967
104S9 -

10549

10659-10681

10874

11059-11087

-11350.

747-975'

The bonds so caf1rd will. become due.
and parable on - end after June 1 5.
1982 at thn. offices - of the paying
spent* mentioned In the: terms'- and
conditions "of the -bond*. ’■ — ;

Firmer in ore ' it is recalled thnt the
following, bond*, .drawn - In previous
years -have not yet been nreeoted for
payment:

SU.S.T.OOO .

. Maturity 15.6.1877.. .

. . ’ - . 2100- \- ' .

. ; Maturity 1541.1978
• • 2406 ■ •

Maturity .15-8-1 980
.5332-5333 5380-5363

SUJL250

Maturity 1 5-6-1 975'

6262-B264**?625 r 42|»5 *" 8282-8284
6300 . 6421 6505-8511

6558-8559 BS64 . 6567-8588

Maturity 15-8.1981

2912-291 3- 2922-2924 2979-2980

3022

Amount rnmjrfntng outstanding after
June 15 . 1982:

SU-5.3.264.000 represented by.

. 2448 bonds of SU.S.1-000

3264 bond* Of SU-S-250

BANQUE INTERNATIONALE A
LUXEMBOURG
5ocMld . Anonym* '
Trustee

Luxembourg.

June 1st, 1982.

MAKITA electric works, ltd,

(CDRSJ

Referring to the advertisement of
January 28th. T9B2 the undersigned
announces that the new shares from

10% bonus have been- received. As

tram June 9tb, 1982 the new CDRs
Mmkfta Electric Works. Ltd. cum «H*.
cp -no. 28 14*. and talon, will be.
pratuttuoaslv obtainable It KlS-
Asxodstle N.V» 5puMmat 172.
Amsterdam against delivery <ai tha
required dtv.pps.no. 26. ,

As to the ootstandlng : CDRs of reso.
50 and 1.000 shs. each, a holder of
10 CDRs of the same denomination
.is. entitled to receive one new COR
- of the denomination.

CumblMtloa of denominations is

After Septe m ber i«h. 1982 the
equivalent of the CDRs which have
not been darned by the holders of
dlexssmd. 35 wW be sold. The pro-
ceeds. after deduction of expenses, will
bn held hi cash at the disposal of said
holders. .

Further tha - undersigned announces
that as from 9th June. 1982 et Kas-
Assotiatie N.V. In Amsterdam, divjcp-
oo. 27 (scceiDDanied by an "Affidavit")
of the CDRs Maktta Electric - Works.
Lid., will be'bavable DBS. 3,42 pet Per
COR repr. 50 aba. and Dlls. fiRrSQ per
CD |t -repr. 1,000 Sbs. (dW. per rec-
ast* 20.2.1982; gross Yen 7.5B.KM
after deductron of 15%' Japanese tax
— Yen 56.25— Dfls. 0,50 per CDR.
reor. 50 ' Shs, - and Yen 1128.- -

-DBs. 12. - oer CDS -repr. 1.000 She.
Without an Affidavit- 20%. J ip. tax («,.
Yen. 75.— — DM- 0.81- p. OJR.repr.
50 Sh*. and Van 1500.- -Dlls.

■ 1 8.20 p. CDR ICPr. 1.000 - SfisJ will

S [.deducted.

Rar 20.5.1982 the die. will only be
PaM under deduction of 20% Jap. tax
with DBs: 3.2T net per CDR reon 50
'Shs. and Oils. 64,20 net per CDR'repr.

, 1-000 Shs.. ->n accordance wHJi tile
Japanese tax regulations.

Amsterdam, 26th Mav. 1982

AMSTERDAM DEPOSITARY
COMPANY N.V.

H. J. HEIN Z COMPAN Y LIMITED

NOTICE. 15 HEREBY GIVEJJ_U«t the
Transfer Books of the 6% Debenture
Slock 19751 84 and the 5ij« Debenture
stock 1076185. of this company will be
closed from 17-30 July 1982 — both dates
Inclusive.

Haves Park,

Hares. Middlesex.

28th Mav. 1982.

BASE LENDING RATES

A.B.N. Bank 13 96

Allied Irish Bank 13 %

American Express Bk. 13 %

Amro Bank 13 %

Henry Ansbacher....... 13 %

Arhirthnot Latham ... 13’. % -
Associates Cap. Corp. 13 %.

Banco de Bilbao 13 %

BCCI . 13 %

Bank Hapoalim BM -.- 13 %
Bank of Ireland . T — ... 13 %
Bank Leurai (UK) pic- -13 %
Bank of Cyprus 13 %

Bank . Street Sec. Ltd- 14 %

Bank of -NiS-W .-.,13 %

Banque Beige Ltd. 13 %
Banqne da Rhone et de

la Tamise SJL 13J9S

Barclays Bank ......... 13 %

1 Beneficial Trust Ltd. ...• 14 % ;
Bremar ‘ Holdings Ltd. -14- ^ ■
Brit Bank of Kid. East 13 %

■ Brown Shipley 13 96

Canada Penn’t Trust... 13J%
Castle Court Trust lid. 13i%
Cavendish G’txrst-Ltd. 14 %.

Cayzer Ltd. - — 13 %

Cedar Holdings .......... 23 % .

I Charterhouse Japhet 13 %

Chouiartons 13 %

Citibank Savings 1123%

Clydesdale Bank 23 %

C. E. Coates 2* %

Comm Bk of Near. East 13 % ■
Consolidated Credits... 13 %-
Cooperative Bank ...-.-*13 %
Corinthian Secs. ■■■— 13 %
The Gyprus Popular Bk. 13 %
Duncan Lawrie ;..— —-13 %

-Eagil Trust — ..... 23 %

E.T. Trust — 15 %

Exeter Trust Lid. }4 %

First Nat Pin- Cprp:... 15*%,.
. First Nat Secs. LttU. ;25i%

Robert Fraser 14 %

Grindlays Bank' $13 %

■ Guinness' Mahon 13 %

■ Hambros Bank 13 %

Heritage & Gen,. Trust 13 %

■ Hill Sampel 513 %

C. Hoare & Co ;..tl3 %

Hongkong fit. Shanghai 13 %
Kingsnortb Trust -Ltd. 14 %
Knowsley & Co. Ltd.... 13}%.

Lloyds Bank 13 %

Mall inhall Limited ... 13 %
Edward Manson & Co. 14 %
Midland Bank 13. %

■ Samuel Montagu ...... 13 %

■ Morgan Grenfell 13 %

National L Westminster .13 %
Norwich ‘General Trust 13 %
P. S. Kefson & Co. )3 %

■’ Roxburghe Guarantee 134%

■ K S. 'Schwab 13 %

: Slavenburg’s Bank ...... 13 %

- Standard Chartered ...p3 %

Trade Dev. Bank .13 %

' Trustee Savings Bank 13 %

TSB Ltd. :.... 13 %

United Bank of Kuwait 13 %
Whiteaway LaidJaw ... 13}%

Williams & Giya’s- 13 %

.. Wintnxst Seci Ltd. ... 13 %
Yorkshire Bank 13 %

■ Mamba fa of «ha AcwptJnfl Houmw.
ComrnftMt. .

m 7-day deposits tOW, 1-month
■\02S%. Short 1 tarm 0,000/12
month 12 , 6 %..

t 7-day dapoaitx. on autns of: umrtr
£10,00(7 - lOWt. £10,000. up »
£50,000 11%, £50,000 nmi ovaf
11»*%. - •

* Call dapoifaf £1.000 bnd ovar
' T0 *‘-

H 21 -day deposits ovaf £1,000 I'RilC-
S. Damand; dapftaJta
l MortgatjeiasB rate.

aged over tkne, weighted for the
frequencies perceived by the
human ear and expressed in a
logarithmic scale so that a
change of- 3dB(A) represents a
doubling or halving.)

‘ The commission believes
that, exposures above 90dB(A)
over an eight-hour day carry
such a presumption of risk
that . “ reasonably practicable
measures for noise control
otherwise than by personal pro-
tection ” should be extended to
the whole of industry. Above
90dB(A) employers will have to
cany out noise surveys and keep
records for inspection, provide
stumble bearing protection with
information and training for
employees, produce a plan of
action to reduce noise and
appoint a qualified person, to
run it.

There are no precise figures
for those at risk from industrial
noise. Damage varies with the
type of noise, the length of
exposure and the susceptibility
of individual ears. But about
600,0(10 workers in Brimhi are
probably exposed to 90dJ3 (A)
and above.

Research has shown that U
100 people suffer noise levels
of 90dB(A) for 10 years, five
will become deaf enough to
qualify for disability benefit.
More than 2m could face lesser
degrees of risk through long
exposure to levels between 80
and 90dB(A).

However, the Trades Union

A Bilsom noise survey in Bracknell, Berks.

Congress wants the action level
to be 85dB(A) and ior the
emphasis in achieving this to
lie with employers making the
working environment safe by
reducing noise at source rather
than placing the burden of
action on employees by expect-
ing them to wear hearing
protection.

The Confederation of British
Industry says it can live with
90dB(A) but no lower. For the
CBI the answer lies largely in
educating workers to use ear
plugs and muffs because engi-

neering out noise is so expen-
sive.

The TUC stand Is symbolised
in its call for the name of the
regulations. Protection of Hear-
ing at Work, to be changed to
the Control of Noise at Work.

“ Without sustained and effec-
tive pressure for the control of
noise at the design stage, it is
doubtful whether the new regu-
lations will be effective in
promoting a long-term improve-
ment in noise reduction in the
workplace,” the TUC says.

The TUC also calls for

governmental financial incen-
tives to encourage industry to
co-operate to promote noise
control programmes.

Mr Dick Eberlie, a CBI
spokesman commented: “ Indus-
tries do not want their workers
going deaf and reasonable costs
are acceptable. Massive costs
which slow down investment are
not,” The CBI estimates that
it could cost British industry
£625m to achieve noise levels
below 90dB (A) and an addi-
tional £500m to go below
84dB(A).

Mr Eberlie believes the prob-
lem of noise in industry could
almost disappear within five
years if enough money was
spent designing ear muffs and
plugs which are comfortable and
enough spent on publicity to
persuade people to use them.

However, the EEC Commis-
sion may yet force the CBI
below its current stick-
ing point of QOdB(A) and more
towards control of noise at
source. Although a draft direc-
tive has not yet been produced,
a working document specified
85dB(A) as the noise limit and
said that the use of ear protec-
tors should remain an excep-
tional measure.

The progress of new British
regulations could get hopeless-
ly entangled with that of the
Brussels directive and the
British Government may wait to
see what emerges from the
commission. Both Denmark

and the Netherlands want the
noise level specified to be
80dB(A) viat a step of 85dB(A)
and Britain is isolated in hold-
ing out for OQdB(A).

' Looked at from the European
perspective, Britain has a long
way to go in appreciating the
extent and dangers of industrial
noise according to Mr David
Howell, managing director of
Bi9som International, hearing
protection specialists.

His staff was once told by
the safety officer of a British
shipyard (that deafness was Just
an occupational hazard that
went with the job.

He favours pant of the TUC
argument— that 85 dB (A ) is the
right control level— and part of
the CBI argument — that hearing
protection equipment is an
acceptable solution when com-
panies cannot, or cannot afford '
to reduce noise at source.

According to Mr Howell, with
the help of audiovisual presen-
tations workers can be per-
suaded to use ear protection.
After a Bilsom presentation at
Tredomen Engineering, in
Wales, part of the National
Coal Board, 60 per cent of the
workforce started using ear pro-
tectors

In January Bilsom, which has
80 per cent of the ear plug
market in Britain but 20 per
cent of the much larger ear-
muff market introduced a new
hearing protection advisory ser-
vice for industry. Apart from
conducting noise surveys and

o 80 100

dodbato

hearing tests, the plan Is to
advise industry on.noise control
measures. At the same time as
efforts are being made to per-
suade workers to protect their
ears, there axe signs of progress
in making machines quieter.

Mr Henry Tipton, manager of
the applied science division of
the Machine Tool Industry Re-
search Association, said that
over the past four or five years
most machine tools had been
reduced to around 80dB(A).

Lucas CAV has also made
considerable progress in reduc-
ing noise at source. The com-
pany has spent £1.6m on a noise
reduction programme which has
involved setting up a group
noise control centre with 14
specialists. Lucas sets a stan-
dard of S3dB(A) for all the
equipment it buys.

IioydsBank

a fresh approach to
international banking

Major corporations
- expect a superior

banking service. ^

Lloyds Bank International
can provide it, because we
are integrated as a commercial
and merchant bank internationally.

. It is this that makes us different

What’s more, no bank is backed by a stronger
capital structure.

In an unsetded world we know there are business
risks as well as opportunities. Our skill lies in
combining realistic advice on complex financial
problems with the resources to implement
practical solutions.'

We are asrdiable in handling trade finance as .
when assembling finance for the biggest of
multinational projects. We are as much at home
in our domestic markets overseas as in the
' international capital and money markets.

We operate in depth across five continents and

J conduct business in over
a hundred countries. Yet
our management remains a
close-knit team of
professionals; and we are
S structured expressly to enable
them to communicate freely across
the globe and to our top decision makers.

It’s because we are integrated that wherever you
deal with us- ’

• You lock into a geographic network and
range of services matching the best

• You tap a fund of expertise and
reserve of knowledge second to none

• You secure the fast and sure response
that gives you the edge

A fresh approach to international banking

International

Financial Times -3Jiuisday: June -^1982

Companies and Markets

NEW YORK

| June May
' i aa

AGP Industries.-.!

—• AMF ......

W AM Intf..;

AHA I

ASA_ ■„ !

Ayx Corp 1

A<feot Lam |

Abce Clave

Amvbe Oil & Gail
Atnanced Micro.;
Adma Ufa ft Ga si
Ahmanson tH.F.jj
Air Prod ft Cham

Akzona

Albany Int

Aibeito-Cuiv.

Albertson's

AieanAluminlum
Afeo Standard....
Alexander ft Al...

A|egh«ny Int

Allied Corp

Allied Stor» ......

Allls-Chalmcrs,...
Alpha Portd .!

Alcoa...—

Amal. Sugar. . —

A max

Amdahl Corp— '
Amerada Hess....

Am. Airlines

Am. Brenda ..

Am. Broadcast's

Am. Can i

Am. Cyanamid....
Am. Eleot. PawrJ

Am. Depress I

Am. Gen. Insnce.
Am. Holst ft Dk...
Am. Home Prod_
Am. Hosp. Suppy
Am. Medical Inti.

:-~-Am. Motor* - ;

'"Am. Nat. Resces.<

l ,P^m. Petflna [

-.-—Jim. Quasar Pet_

Am. Standard '

Am. Store*.

jtm.Tel.ftTel i

.Ameteklnc ;

“ Amfac I

— AMP. :

Amstar |

Amstead Inds— .|
— Anchor Hockg....<

* Anhauser-Bh '

‘ Archer Daniels... I
-- Armco !

Armstrong CK_
AsameraOiL...

Asarco.

'Ashland Oil

Assd. D. Goods.
• Atlantia Rich...
~ Auto- Data Prg.

- Avoo

Avery Inti

.! 15>i I

•. a '

.! aiu

.1 337, *
.■ 31 la I
.- Ais, J
' 24J*
16 ’
. 34 |

— Avnet. ,

Avon Prod

Baker Inti

rBalt Gas ft El

Ban Cal

— Bangor Punta ....

Bank America ....
Bank of N.Y J

• Bankers Tst N.Y.<
BerryWrlght i

— Bausch ft Lomb. 1

Baxt Trav Lab :

Beatrice Foods...]

Bekar Inda _■

Bell ft Howell ...|

— Bell Industries ....

Bend lx J

Beneficial I

Beth Steel

Big Thee lnda....,i
Black ft Decker..

Block HR

'B ue Bell

_ Boeing. . |

Boise Cascade....

Borden

Borg Warner

Braniff InU >

Briggs Strata 1

Bristol-Myers

BP— I

Brockway Glass.,
Brown Forman Bi

Brown Grp '

" Brown ft Sharp...)

Browng Ferris

Brunswick I

-Bucyrus-Erle

— Burlington ind ...,
Burlington Nrthnj

Bumdy i

^-Burroughs.

— OBI Inds. t

CBS r

cpc inti ....:

CSX 1

Campbell Red U
Campbell Soup— I
Campbell Tagg -i
Canal Randolph.;

Can. Pacific <

Carlisle Corp

Carnation

Carp Tech.

Carter Hawley...)

Caterpillar

Celanese Corp... I

Centel I

Centex I

Central ft Sw j

Central Soya. i

Cartel n-teed

Cessna Aircraft...
Champ Home Bid;

Champ Int ;

Champ Sp Plug..|

Charter Co

Chase Manhatt'nl

Chemical NY i

Chase Is Pond I

Chicago PneumJ

Chrysler j

Chubb I

Cigna ....

Cincinnati Mlj

Citicorp

Cities Service

City Invest. ;

Clark Equipment 1
Clave Cliffs Iron.-

Clorox

Clueltt Peaby ....

Coca Cola—

Colgate Palm

Collins Alkman...
Colt Inds

IB 1 1BA,
19 J* ! 20*i
l3*i ; 137,
277s 28

SZSa : 226*
16S 4 j 16/#
23 U 23),
323, i 32 L,
267, 27i®

iz ! '■

84 j 24M
62 7, 63d,

22 >4 1-225,
141, | 141,
347, | 347,
33 U 327,
13l« ! 14
297, | 2B1 z
181, j 177,

13 I 13U
221, I 22 -4
465, 455,

183, -18E,

344 346,

36 I 34 -.
383* 391,

343* 343*

405, 401*

10*« 106,
341* 343*

234 235,

305, ! 301,
204 214

224 213*

315, 317,

345, , 354

la* ; 12 4
374 I 363*
494 i 30
29 j 294
214 215,

16 16
U 114
117, 12

154 j 16;*
35, ; 24
134 , 134
p* , 77,

0 9

424 . 424
304 32

337, 337,

143, I 144
67, I 6
396, , 404

377, 385,

214 216,

253, 256,

385, 37

23 234

195, 20

195, J 20*4
137, i 134
174 ; 17
324 . 321,
177* ; 174
121, . 124
24 1* • 244

I June ) May
stock ; l I as

ii — 111 .i * t~~-* -r

Columbia Gas ...4 304 j £07,
Columbia Piet....- 68 | 88

Combined lnt"_. : 214 j S1J*
Combustn. Eng- 274, ! 275,
Gmwith. EdlsonJ 22 . 224

Comm, satelftej 544 1 654.

Comp. Science...] 12

Cone Mills. : 32

Conrae i 23

Cons Edison ...... 364

Cons. Foods. 324

Cons Freight — 344

Con. Mat Gas 433*

Conmuer Power 17**
Cont Air Lines... 44

Conti. Corp 344

Conti. -Group— 274

Conti monls. 2S3 4

Conti. T«lep la4

Control Data 244

Cooper Inds

Goors Adolph—,.

CopperweJd -j

Corning Glass. ....
Corroon Black — j
Cox BroancasTgl

Crane-

Crocker Nat.

Crown Cork j

Crown Zell I

Cummins Eng. _.!
Curtiss-wrlght ...

Demon—*. ,

Dana I

Dart A Kraft. .. ...

Data Gen ;

Dayton-Hudson J

Deere —

Delta Air

Denny's. —..I

Dentapfy inti . ...!
Detroit Edison....'.

Diamond inti

Diamond Shank-j

DiGiorgla-- -I

Digital Equip— ...,

Dillingham

DIUon — ;

Disney (Walti — ,

Dome Mines

Donnelly (RH)

Dover Corp

Dow Chemical ...i

Dow Jones ...

Dresser

Dr. Pepper

Duke Power. 1

Dun ft Brad-

Du Pont

EG ft G

Easco

Eastern Airlines.
Eastern Gas ft F.
Eastman Kodak-.

Eaton ;

Eehlln Mfg ‘

Eckherd Jack-...:
Electronic Data.
Elect. Memories. 1

El Paw 1

Emerson Elect...:
Emery Air Fgt. ...'

Em hart ;

Engelhard Corp-

Ensereh..

Esmark

Ethyl...

Evans Prod •

Ex Cell O ... -

Exxon '

FMC

Fabarge.- ■

Fedders— I

Federal Co '

Federal Mogul.... 1
Fed. Nat. Mort....;
Fed. Paper Brd...;
Fed. Resources-.
Fed. Dap. Store*

Reidcrest Ml

Firestone- *

1st Bank System
1st Charter Fin-,

304 1 304
114 ; 114
164 164

46»* I 48
204 j 204
274 2B4
22 4 334

274 I 274

237, < 233,
187, ! 184
33 ! 33

436, 431*

74 74

276, 277,

524 1 62
26 274

345* 341,

255* ! 254
304 j 303,

227, 227,

1st Chicago..,.:
1st City BankTex
1st Interstate —
1st Mississippi....'
1st Nat. Boston....
.1st Penn—.—..-

Fisons- ;

Fleetwood Ent...,

Flexl-van

Florida Pwr ft L_J

Ford Motor ;

Foremost Mck—i
Foster Wheeler...
Freeport McM....-

Fruehauf '

GAF •

GATX...

Gan net 1

Galea j

Gen Am Invest...

Gen Cinema i

Gen Dynamics ...{

Gen Electric j

Gen Foods •

Gen Instruments!

Gen Mills !

Gen Motors >

Gan Pub Utilities!

Gen Signal -J

Gen Telep Elec. J

Gen Tire !

Ganesco !

17 | 17

254 j 26
284 284

94 , 10
224 I 224
. 34 34

54 66,

144 .144
164 164

317, 32i,

224 225*

314 304

114 ! 12
167, j 174
187, < 187,
114 I 114
353* : 264

334 I 323*
174 174

147, i 154
404 | 404
264 265*

615, 617,

364 364

341* 345*

397, 397,

431, 427,

47, 5

341, 3+3*

281, . 284
204 I 20i,'
4 | 41,

Genuine Parts...

Georgia Pac.

Geosource

Gerbes Prod

Getty Oil

Glddena Lewis...

Gillette

Global Marine....
Goodrich iBF)-..
Goodyear Tire...

Gould

Grace

Grainger tW.Wj...

■ 34 T, l 354
144 141*

. 431* I 434
295* I 301*
• S24 j 62
161* 16>*
' 324 ’ 324

| 114 11*«

194 1 201*
1 224 j 324
241* | 2+1*
354 ; 365*
I 384 i 39

Indices

WORLD STOCK MARKETS

IJuna May
Stock j 1 38

Gt Atl.Pao. TeaJ 57, 57*

Gt Basins PctTj 24 .J 1 *

Gt Nthn.Nekoosa.' 517, 531*

Gt WestFlnandJ 12 12

Greyhound J. 131* 134

Grumman- i 27 27

Gulf & Weston.-, 144 145,

Gulf Oil.— J

Hall 'FBI ;

Halliburton :

Harnmcrmill Ppr,
Handlaman
Hanna Mining „
Harcourt Brace-!

Harris Bancp J

Harris Corp.. ......

Hsursco. .....

Hecfa Mining

Heins (HJ) —

Heller Intf ,

Hercules-

Herahey

HeubMn

Hewlett Pkd

Hilton Hotels

Hitachi

Holiday Inns 1

Holly Sugar.,, ......

Homestake

Honeywell

Hoover.

Hoover Uni- 1

Hormel Geo.V_...j
Hospital Corp- .
HouMhokl Inti.. ,.i

Houston Inds. J

Hudson Bay Mng-’

Hughes Tool

Humana ..j

26 254

40 47

211* 217,

89 685*

94 95*

175, 174

204 19

297, 30

17&* 177,

19 19

124 127,

24 244

225* 234

MGM. ....—I 77*

Metromedia ...... 300

Milton Bradey ... ! LBVt
Minnesota MM. J 61
Missouri Pat ..—. 60

Mobill ! 334

Modem Merchgt 8**

Mohasca 104

Monarch M/T— 141,

Monsanto- — 544

Moore 'McCmrku 195*

Morgan UP)- 497,

Moturolo .'...j 5B4

Munslrtgwcar— j 137,
Murphy (GCI-...J 11

MurhyOil- ! 285,

Nabisco Brands..) 334
NalcoChem— .! .2318

Nat. can. -...j 16

Nat. Detroit. I 21

NaL DIsLCham.J 20$*
Nat Gypsum..-.) 194
Nat. Medical End 145,
Nat.SemicduotrJ 10T,
Nat Service Ind^ 254
Nat standard-..! 10'*

Nat Steel | 164

NotomasM .1 184

NCNB.m— -I 134

New England EL I 277,
NY State E ft G...> 167,

NY Tim os -j 387,

NewmontMlnlngi 324
Nieg. Mohawk. ... 14

NICORIne- ! 284

Nielsen (AO A. ...I 464
NL Industries-...; 224
NLT - 265,

Husky 041-

Hutton (EF) -

1C Inds.

IU Int -

Ideal Basic Ind...

Ideal Toy

ICI ADR

imp Corp Amer-

INCO -

Ingeraol Rand —

Inland Steel -

Intel — I

Inter First Corp-

Intertake j

Inter North

IBM - i

inti. Flavours

Inti. Harvester....-'
Intl.lncome Prop

inti. Paper.

lnb Rectifier.

inti. Tel ft Tel ....

Irving Bank- J

James iF8) j

Jeffn-PIfot

Jewel Cos.—. ■

Jim Walter I

Johnson- Contr .. ‘

Johnson ft Jns—..

J oh nth an Log an J

Joy Mnf. 1

K. Mart I

Kaiser Alum

Kaiser Steel

Kaneb Services- 1 15s*
Kaufman Brd: — 74

Kay Carp -: 95*

Kellogg.; • 24J«

Kennametal 1 2BSs

Kerr-McGee— ...! 284

Kidde 1 *14

Kimberly-Clark ., 60 1*
King's Dept St... 1 *4
Knight Rdr. Nws.| 304

Koppers. ; 143*

Kroehler. 8a,

LTV. ! 124

Lanier Bus. Prodj 154

Loaeftiogler 23

Leareway Trans. 27

Lenox '

Levi Strauss

Levttz Furntr !

Libby Owens FdJ

Uly (Ell>_ I

Lincoln NaL- i

Litton Inds.. i

Lockheed 1

Loews- !

Lone Star inds...:!
Longs Drug Btrs.'
Louisiana Land...;
Louisiana Pac..,..:

Lowenrtain 1

Lubrlzol '

Lucky str*.

M/A Cam. Inc

MCA.

MacMillan

Nwesta Mutual... 94 94

N west Steel W....I 164 165*

Norton 33 33

Norton Simon— 185s 185*

Occidental Pet.. 204 *04

Ocean Drill Exp.. 194 197,

Ogden 225, *84

OgllvyftMrth I 334 334

Ohio Edison- !3 137,

Olin 194 19T,

Omark 164 -165,

Onecfc- *94 29

Outboard Marine 1 24 4 245,

Overseas Ship....! 164 154

Owens-Coming J 187, igs,
Owens-Illinois ..... 255* *54

PHH Group ' 20 204

PPG Inds 1 315* 334

Pabst Brewing. ..j 1BT, 207,
Pac. Gas ft Elect.! 24s, ; 244
Pac. Lighting —! 254 1 *54
Pac. Lumber ; 184 ! 19

Pac. TelA Tel. ...i ~ 194

Palm Beach- 1 155, 155,

Pan. Am. Air { 34 34

Pan. Hand Pipe...! 2*4 30

Parker Drilling ... 135, 134

Parker Hanfn j 165* 17

Peabody Inti • 6 55*

Penn Central *64 255*

Penney (JC)..— . 35a, 347,

Paniuoll ) 37 367,

Peoples Energy-! 84 81,

PepsiCo .! 384 385,

Perkin Elmer. - 19s, 194

Petrie Stores 225* *35*

Petralane— J 147, J64

Pfizer ; 634 634

Phelps Dodge.— J 227, .234

PhHa Elect \ 144 14

Phllbro Sal'n InoJ 234 *34

Philip Morris.— 486, 495,

Phillips Pet I 31 301,

Pillbury ' 434 445,

Pioneer Corp 1 194 204

Pitney- Bowes i *87, 284

Pfttston j 146, 146,

Planning Res'ch.; 65* 65*

Plessay 81 4 81 4

Polaroid— : 185, 185*

Potlatch .» 215*. *g

Prentice Hall , 367, 27

Proctor Gamble.l 834 837,

Putoserv. EftGJ 19s, 1 104
Pub. S. Indiana—i 216, ) 214

Mac-

Mfcrs Hanover—.
Manvllle Corp. ...

Mapee-

Marine Mid-

Marriott

Marsh McLenn...

Marshan Field

Martin Mtta

Maryland Cup ....

■Mksco !

Massey Fergn. ...'
Mass MuJti.Corp.

Mattel

May DspL Strs...:

Maytag -.!

McCulloch !

McDermott (JR)-

McDonalds J

McDonnell Doug-
MCC raw Edlson->

McGraw-Hill )

McLean Trukg ...

Mead

Media Geni.—

Medtronic

Mellon Natl

Melville

Mercantile Sts-..:

Merck

Meredith

Merrill Lynch ...

48 j 464

S15* : 615*
134 : 144

27 : 165,

9 l 87,
*24 *26,

655* | 665,
341* | 344
281, | 294
32 , 624

117, I 12
167, . 164

384 , 385*
434 ' 435*
29 ' 295*

461, j 461*
615, 62

714 784

504 ! 594

26 j 26

NEW YORK

—DOW JONES

June : May ' May May Me

May !

24 1 High

13 Since Cmpjl'fn
Low j High 1 Low

' June ' May
1 1 28

Schlitz Brew.—,.
Schlumbergcr-

SCM

Scott PApbr

Season

Seagram -

Sealed Power-..

Searle (GDI-

Sears Roebuck...

Security Pac.

Sedco

Shall Oil-....-

Shell Trans

Sherwln-Wms —

Signal

Signode —

Simplicity Patt...; 84

Singer 12

Skyline - — 14

Smith inti- ; 306,

Smith KlineBeck 1 67Ss

Soneste InU- 1 10

Sony | 145, -

Southeast Banks 154
Sth. Cal. Edison .( 314

Southern Co 12a,

Sthn. Nat Res—j 264
Sthn. N. Eng.Tel. 445,

Sthn. Pad ne - 50

Sthn. Railway— 834

Southland, - ! 32

S.W. Baneehares 235,
Sperry Corp. .— ' 234

Spring Will, : 274

Square D / 256,

Squibb I 364

STD.Brajids Paint' 234

Std Oil ClifornhL
Std Oil Indiana...'

Std Oil Ohio ;

Stanley Wks. 1

Stauffer Chem._
Sterling Drug-...;

Steveiu (J.P.i !

Stokely Van K-..;
Storage Tech —

Sun Co....

Sundstrand !

Superior Oil

Super val Strs....:

Syntax.

TRW '

Taft

Tampax- ;

337, j 334
445, ] 435,
37 ■ 37

123, 193,-
28 814

234 1 237,
144 137,

284 284

287, 834

354 345*

284 29

294 I 294
164 i 167,
337, 336,

476, ' 485,
304 ■ 30
547, I 347,

Tiuidy ' *67,

Teladyne IO64

Tektronix • 624

Tenneco *57,

TesoraPet 174

Texaco ; 205,

Texas Comm. Bk; 334
Texas Eastern 457,
Texas Gas Tm .. 234
Texas Instr'm'ts , 83 4
Texas Oil ft Gas...- 284
Texas Util (ties ... 924

Textron • 80s,

Thomas Betts ... : 504

Tidewater - ' 225*

Tiger Inti • 7s,

Tims Inc 294

Times Mirror ■ 394

1 Timken

Tipperary-

I Tonka.

' Total Pet

Trane

Transamerica.

Transway-

Trans World....

Travellers.

Trlccntrol

Trl Continental...:
Triton Energy....

7Yier

UAL-

UMC Inds -

Unilever N.V

Union Camp.:.—..
Union Carbide-..

: 177, 1 i77,
. 144 144

, 144 I 141,
164 164

74 a

66 I 565*

, 43 . '434
. 441, ! 45

Union Oil Cel

Union Pacific

Uniroyal

Urrtd. Brands

UnL Energy Res-

US Fidelity G

US Gypsum

US Home

US Inds -

US Shoe.— — !

US Steel 1

US Surgical- 1

US Tobacco..

US Trust J

Utd.TechnoIgs... 1
litd. Telecomms. 1

Upjohn i

VF. - ;

Varlan Auccs. ....
Ver nitron ;

Virginia EP

Vulcan Matrls,...'
Walker (HI Res ._
Wal-Mart Stores.:

Wamaco |

Warner Comms-j
Wamer-Lambt
Washington Post 1
Waste Mangt — :

Weis Mkts \

Wells Fargo 1

W.Pornt Poppl—.i
Western Airlines;
Westn. Nth. Amr.)
Wasting house.—,

Westvaco ;

Weyerhaeuser— «

347, » 346,
361, i 364
B 8
10 I 93*
321, 334

40 4 405*

28 281,
124 1*4

10 97,

314 Zl>«
214 22

204 204

444 441*

36 36

365* 573*

185* 1 184
434 43

434 424

334 : 334
109, , 101,

126, : 125,
434 i 434
134 134

48?a 48?,

31S, ; 32
464 I 47
214 1 217,
335* ( 533*
295, 294

27 4 404

214 22

22 217,

34 34

105, ! 105,
*64 j 384
20 206,
244 ! 294

Wheelobrair F...!
Wheeling Pitts...:

Whirlpool -..J

White Consoltd..

Whittaker..— -

WIckes ...»

Williams Co—

Winn-Dixie Str—

Winnebago

Wise Elec Power

Woolworth

Wrigley

Wyfy - •

Xerox

Yellow Frt Sys ...'

Zipatii.,

Zenith Radio

294 I 294
127, ] 125*
285, : 284
25i* j 267,
22 22 4

3 3

165, 164

36 . 364

64 j 64
SIS, 31b,
187, 185,

315* . 314
9 ' 87,

304 i 314
114 ! 114
171* ' 174
117, ; ns*

4 IndUstr'lSiS 14.97 819.64 824.9B | 828.77 854.57 85B.U ' BB2J2 | 795.47 1 IBS 1.70 41J2
' • • { <4/1 ) 1 (8/J1 ‘fM/ 1/7*1 (2/7/S2)

H’meBnds. 1 59.79 60.96 60.2? 90.22 60.11. 99.95 ) 60.27 ; 55.97 . — ■ —

’ 1 - i i (27/51 (12/2) ' ;

Transport- 318.31 320.14 325.511325.17 330.121 350.60 I 309.48 | 314.39 : 447.38 • 12.52
_ v J <7<1» *8(31 (16(4191) W7iS2l

Utilities llOJM lllJlO 112J9 112.70. 113.40; 113.761 116.96 ! 105.61 1 165.52 1B.5

• . . : < ' t (7/S) [ (13/1) (20/4/681 (2B/4/42)

TradingVol' r ' 1 . 1 1

000-t ’4I,8G0|4* ( 900 44.750 SIJ&O 44,91ft 39,6 10 1 -I-!-.-

■ 1 auiie , iwwj . mnj . a

2 I 1 , 31 , as 1 High 1

Low

AUSTRALIA

All Ord. (1/1/80)

Metal ft Minis. (1.1/88)

, 685.1
, 258.3

| 686.S '! 604.9 j

1 387.7 ; 586J 1

1

608.7 I
578.6 !

1

696 JS M/1) i
425.1 (5/H j

455.6 (10/5)
S22J (2.-41

AUSTRIA

Credit Akuen (2/1/02)

Wall St mixed at mid-session

Day's high 822.96 low 811.93

DENMARK- I

Copenhagen SE (1/1/7*) I lMJMj 115.43 (cl

May 14 Year ago (Approx)

’ 6.52 6.61

108.09; 111.6 (12/61
128.1 | 124.8 ilfi/Bl

66.42 (20/1]

95.8 (4/1)
87 J (4/1)

218^5 (18 11)
666.7 (18/1)

: - ind. dtv. yield %

* ind. PIE Ratio
' ..Long Gov. Bond yield

£: NY. S.E. ALL COMMON
I I »

June ! May I May , May
1 ' 88 ! 27 ■ 26

May 26 • May 19 ! May 12 Year ago (approx

Rises and Falls

•June 1 May 28 May 27

GERMANY I

FAZ-Aktlen (51(12/681 229.72' 290.67: (c) \ 250.941 259,45 fg/4)

CommerzbanWDecmS) 702J I 704.1QI (Cl 1 705.40 ; 728.8 (8/4)

HOLLAND I 1 j j

ANP-CBS General (1970) ' 91.6 | 32.5 (Cl I 92.7| S5J1 (10/5) " i M.C(B/1)

ANP<»S IndUSt (1879) | 70.8! 7I.B 1 (C) ! 72.1 ! 74.8(10/6) [ 954 (4/1)

HONG KONG I i ! j i

Hang Seng Bank (ai/7/84 1S77.62H4B4.27;i4(l7^8n582.Bi: 1445 JZ flS'T) 1 1129J»|S/5)

ITALY j : ! J" i ;

Baaca Comm KalJlW2) ■ 178.5?) 17B JK mj# 174 £12.69 (19 IS) ; 171.82 (24(G)

JAPAN** ] I . j “

Dow Average (I8/S/48) 7M4JD7K8.B87M6.B5 7926JW 1 7326.55(27,11 ' B888J*(17/il

Tokyo New SE (4/1/68) , 548:461 548.82; 546.42; 545 M\ 665^8(27/1) 528.78 (17/n

1 129.52) 123.81 («?> j 124.9*) 1H.S9 (26/1) i 109.12 n/4)

June! May I May May, — : lisuas Traded 11,839 1 1,867 1,851

« 1 ' 88 ! 27 ; 26 High • Low -~l A71 1 646 > 460

f ! — * Falls 1 967 j 779 ' 084

■ 6+J764.5564J386S.1B 71JI0 162.62 Unchanged _| 411 ; 442 j 477

• : i . 1 ' «/l> (12 /*) [Jew Highs— ..j 4 1 8 . 6

New Lows 102 ' 99 1 87

f MONTREAL

June ) May ; May > Ms

41IJ6 (tllEV
527 J CTfflj

88JI1 (28/SV

Industrials > 271,88. S78.58 282.96. 274.68 332.79 (4 It
Combined )_ 287.33! 262.37 264.88’ 258.76: JlfiJH /4.I)

i 270.46 OBJ)
257J3 (1/8)

TORONTO Composite! 1496.8, 1523.911526.3 ' 1497.41 1958.3 (4.1) < 1496.0 <1/61

NEW YORK ACTIVE STOCKS

_ , Change

Tuesday Slocks Closing on

traded price day

-Msae Petrlm.... 1,030.300 19S *-21* IBM

rCitiss Service .. 1.004.300 381, -fli, Bankamar

SATT S77.S0O 531, .- Erxon

» Warner fom . . 556.300 ifT

c Hous. Ind 433.500 19 — Hafibiirtan

SRTT

-Warner fom .
_" e Hous. Ind

Change-

Stocks Closing on
traded price day
. 412,200 61* + 1*

, 407.300 161, - \

358.100 28 —

345.900 234* - <»

342,300 31 + V

NORWAY
Oslo SE (l/T/72)

SINGAPORE 1 r [ j. j

straits Times (1366) ; mjBj 798.87 758.66) 7SB_SS| 818.79(5/1) 1 887.48(8/8)

SOUTH AFRICA f ! • \ [

Gold (1958) i (U! i.4983i (el 47*3 1 6683(5(11 -4103(11(6)

Industrial (1956) (U j ( B£7.1 : (ci 5«3 i 711.7 18(1) ' 5273 (7/flj

SPAIN ' J | ! -

Madrid SE (60/12/81) . 100J24 1 99.80) (el ■ 3834). 107.46 p/2) j 8831 (28/6)

SWEDEN • j [

Jacobson ft P. (1(1/68) 5*532; 580.78' (ql ‘6873; 656.52 (£2, M) ! 68832(28/4)

SWITZERLAND I

Swiss BankCpn.(iT/U/66)j fiSJ ; ns.8 j (o) i 2643 ) 263.1 (11/1) ■ 242.8 (IU*! •

WORLD " " I “1 J ' ,

Capital IntL (1/1 711) , — 1S2.4 j 1323 [ IS2.8 1473 (4/1) ) 128.1 (17/*)

(”) Saturday May 28: Japan Dow 7285.06. TSE 543.63. .

Bwo values cl ell indices are 100 except Australia Alt Ordinary and Mauls—
500. NYSE All Comman — SO: Standard and Poors—’ 10: ind Toronto— 1.000! the
last named based on 1975. f Excluding band*. - 1 400 Industrials. 5 400
Indue toil; plus 40 Uulliias. 40 < financials and 20 Transports. c Closed,
g Unavailable.

AFTER THE recent declining
trend. Wall Street made a mixed
showing at mid-session yesterday
after a fair turnover, with some
Blue Chip issues- performing
better thiu the rest of the
market

Analysts said the market Is
deeply oversold and bargain
h untin g could spur a technical
rally. However, the market
would probably not show any
meaningful gains without some
easing in interest rales, they
added.

The Dow Jones Industrial
Average was up a slight 0J.9 at
815.26 at 1 pm, while the NYSE
All Common Index eased just a
cent to S64L36. Declines edged
out advances by a margin of
about 50 stocks after volume at
X pm of 34.92m shares.

Gains among the Blue Chips
included General Motors, up i
to S43i. Merck, i to $724, Dn
Font, 4 to $33i, Procter and
Gamble, to SS4, and Inter-
national Paper, } to $35&.

The Mesa Petroieum-Qties
Sendee bid battle continued to
attract attention. Volume leader
Mesa shed } to S18J, while Cities
Sendee, also active, was off ?
to $37|. Cities Service rejected
Mesa's take-over bid of. $50 a
share.

Oil drilling and Services stocks
weakened, with SdUomberger
down 1} to $431. Hughes Tool f
to S23g, and NL Industries J to
S21g.

Sullair put on 4 to $72, regain-
ing some of the 12 decline
on Tuesday. Tbe company could
not explain the activity in its
stock. First National Boston rose
IS to S244 on news that it plans
to buy hack up to 12m of its
shares.

THE AMERICAN SE Market
Value Index was 0,76 easier at
264^26 at 1 pm. Volume 2.15m
shares.

Canada

Market relinquished part of an
early morning rise, with the
Toronto Composite index only a

Closing prices for North •
America were not available
for this edition.

net T6 ahead at 1,497.6 at noon.
Golds lost 12.4 to JLS50.S and Oil
and Gas 0.4 to 2.651.6. but nine
of the 14 sub-group indices were
still above overnight levels.

Tokyo

Weighed down by. the yen's
retreat .against the U.S. dollar,
interest rate worries and the
continued downward trend over-
night on Wadi Street, the Tokyo
market tended to lose ground
yesterday in another light trade,
bringing to an end a two-day
rally on bargain-hunting.

The NikkeJ-Dow Jones Aver-
age. up 43 points the previous
day, receded 23.76 to 7,344.90.
The Tokyo SE index shed 1.36
to 543.46. while volume equalled
Tuesday's modest total of l?0ra
shares.

A traded commented that
investors are waiting for the
economic summit of industrial
nations to open tomorrow, as
they do not wish to move hastily
beforehand.

Light Electricals, Precision
Instruments, " Pharmaceuticals
and Shipbuilders mostly tamed
easier. Sony slipped Y30 to
Y3.570, Canon Y13 40 Y7S7,
Ajinomoto Y15 to Y845, Taisho
Pharmaceutical Y8 to Y597 and
Mitsui Shipbuilding Y6 to Y169.

Heavy Electric Machines,
however, held up fairly well,
with Hitachi hardening Y3 to
Y6SQ. Motors had Toyota up Y10
at Y1.090 bat Honda off Y9 at
Y717.

Construction companies and
Housebuilders declined after
news of slower April housing
starts. Hasegawa Komuten
dipping Y1 5to Y565.

Speculative * Gold Mining
issues were supported, Mitsui
Mining and Smelting adding Y9
at Y252.

Germany

Bourse prices dosed broadly
lower after interest rate uncer-
tainty and a weaker Domestic
Bond market erased the small
interest buoying quotes earlier
in the session. In addition,
brokers said professional inves-
tors left the sidelines at mid-
morning to sell off holdings in

a ' thin market, particularly rh
cases where profits could be
made.

After the recent good rally by
Department Stores issues, Rar-
stadt led the sector down with a
fall of DM 6 to DM 204, while
Kaufhof lost DM £30 at
DM 171.20. ’

la Chemicals, Bayer- slipped
DM 1.60 to DM 1-18.70, depressed
by news of a D=S .$15Qm Option
Bond. • •

Banks in particular wens
depressed by the weak Domestic
Bond market, with Deutsche
declining DM 2.10 to DM 268A0,
Dresdner DM 1.30 to DM 149.70
and Commerzbank DM 100 to
DM 142.60.

Uncertainty about the ULS.
dollar and rising ‘U.S. interest
rates undermined ' Domestic
Bond' prices, which registered
falls ranging to DM 1.00. The
Bundesbank bought DM 217m of
paper ozl the Frankfurt market
alone, compared to DH 30.8m on
' Tuesday.

Paris

Shares tended to decline In
quiet trading in ime witfc -the
lower overnight Wall Street
trend. Market nevousness ahead
of the Versailles economic sum-
mit and concern about the Inter-,
national . political situation also
depressed sentiment.

Australia

The fall in Gold Bullion price*
overseas, lower overnight London
metal prices and the weaker
Wall Street close on Tuesday
left Australian markets easier-
inclined yesterday and some
leading Mining issues sharply
lower. However, several Oil and
Gas issues were in firmer fettle-
The Australian All Ordinaries
index shed 32 to 503.1 and the
Metals and Minerals sub-group
index fell -8-4 to 359.3. although
the Oil and Gas indicator edged
up 1.8 to 486.9.

In the Minings group. Central
Norseman Gold weakened 10
cents to A$4.15, MIM 12 cents
to A$2.89 and Bougainville 11
cents to AS1.19. while Western .
Mining, AS3.48. and CRA, A$3.03 r
retreated 7 cents apiece. .

i \ CSH, which posted a 28,5 per
i cent after tax profits fall to
A$82.4oi for the year to March,

’ receded 10 cents to AS2.98, while
■ BHP was 8. cents cheaper at
i A$7,76. . . *

Trading was - dominated by
situation stocks, with Bond
announcing after the close the
1 sale qf most of Its stake in Oil
and X3as issue Santos for •
A$236.8m to National Mutual Life
Association of Australasia.

This latest Bond deal follows :
its sale of large holdings in
Basin OB and Beef Oil on Tues-
day. Bond lost 2 cents to ASL35, 1
but Santos was 4 cents up at
-A$5.60. Basin was steady at
A58.O0 and - Reef gained a cent
at ASl^L

Milan

Stock prices mostly receded as
the market reacted to mounting
labour tension triggered by the
decision of The Manufacturers
Confederation to cancel a 1975 ,
agreement on wage indexation. ■
As Italy’s private industry was
affected by a four-hour nation- 1
wide walk-out sales -prevailed 1
throughout causing widespread 1
losses id 'all sectors. . Tbe'Bggca ;
Commercial e Italiana index lost
L71 at 176.57. ... . 1

Hong Kong

The fresh overnight Wall .
Street decline,; worries over the
uncertain interest rate outlook
and a weakening Hong Kong^
dollar against the TJ.S. currency '
caused Hong Kong markets to ^
retreat yesterday. .

The Hang Seng index lost •
26.65 at 1,377.62. However,*
trading remained than, amount-
ing to HKS180Jt0m on the four
exchanges in the short Wednes-
day session, against the
HK$23 1.48m recorded in the full
day’s trade on Tuesday. '

Johannesburg

The general downward, slide '
cohtimied, reflecting the lower 1 '
Gold Bullion price and ^Domy ‘
forecasts about the South 1
- African . economy. . Trading
volume was low, but picked up ',
towards the close. -v

AMCAIntL , 17 I

AblUM 155* |

Agnlco Eagla 6 »b i

Aloan Alumlti .... *2
Algoma Staal.^,... El

Asbestos ' 118* !

Bk. Montreal SOI* >

BIlNovb Beotia...; B1U
Basic Resources, 2.85 .

BELGIUM (continued)

June 2 Price : + or
I Fra. ' —

Patroflna. 4,5B5i +100

Roy ale Belga - 5,500- —220

Soc. Gen. Banq^i 2,510.

Soc Gen Beige... 1,252^ +50

Safina. • J,300i -r20

Solvay : 1,980 +10

Tractori Elect 2,740 + 60

UCB. ! 2^08 +20

VieillaMont I 2,150' +50

HOLLAND

Bell Canada

Bow Valley

BP Canada

Brascan A.

Brlnoo i

B.C.Forest

OIL Inc

Cadillac Fairvlew;
Can Cement

195* ; ao
14?1 ; 151*
28 • 291*

165* i 181*
3.60 '• 3.60
91* ■ 0>|

21i* j 215*
71* !. 77,
91* | 9I«

Can NW Energy .

Can Packers

Can Truico

Can Imp Bank ..

Can Pacific

Can P. Ent

Can Tire

.1 221* I 23
.. 304* ! 301*
. 24 ' 235*

.1 20ia 1 21
.' 256* I 261*
143 b t 14 if
. 351* / 34**

Chieftain..... ' 20

Cominco. ! 356s

Cons Bathst A — ' 141*
Cont Bk Canada.: 6 3 c

CosekaRes i 5£5

Costain. i 67,

Daon Dave I i 2.95

Denison Mines..... 196*

Dome Mines.-. i 105*

Dome Petralaum. 71*

Dom Foundries K 32t*

Dom Stores | 157,

Domtar [ 165*

Falcon Nickels... 48

Gan star 1 133*

Gt West Life. 210

GllIF Canada.„....i 15
Gulfstream Res.. 2.55
Hawk Sid. Can....) 8i«
Holli.nger Argus ] ZB-i*

i

Hudson Bay Mng 151*

Hudson’s Bay MBi*

Husky 01! - 6 t,

Imaseo- J 38i,

Imp Oil .A 935*

fnoo I 1818

Inda! | 95*

Inter. Pipe. i 17

Mac Bloedel >

Marks ft Spencer!

Massey -Fern 1

McIntyre Mines..)

Mitel Corp J

Moore Corp- 1

Nat Sea Prods Al
Noranda Mines..:

10i« ; 10i*
101+ 105a

2.58 | 2.61
29 Lg | 291*
173 b . 171*
257, I 36
71* I 71*
14 J 145*

Nnth. Telecom..'

OakwoodPet 1

Pacific Copper...!
Pan Can Petrol

Patino

Placer Dev

Power Corp

Quebec Strgn»...|

Ranger Oil j

Reed Stenhs A ...[

(So Algom

Royal Bank. |

Royal Trustee A_

Sceptre Res. (

Seagram

Shell Lan Oil i

Steel of Can A....)

Tack B. [

Texaco Canada..)
Thomson NawxAi
Toront oDom Bk.
TransCan Pipe_.
Trans Mntn.OitAl

Walker(H)Res I

Waateoat TransJ
Weston (Ceo) j

485* ! 491*
105* j 11
1.40 1.50

68 685*

22 1 23

121* < 135*
10 ; 101,
2.45 | 2.45

71, ; 76*

117* | Hi,
33 341*

205* 207*

13 13

57* | 56*
631* 64

157* 171*

191* I 195*

6 6

2B7* 271,

21 Zita

241* 241*

IBS* 187*

67* 7

185* 165,

129* 127*

316* I 22

AUSTRIA

; i

June 2 j price jj+ or

Creditanstalt -...f 214 j —1

Landerbank ! 184 +2

Peri moose r._ I 300

Semperit I 67

Steyr Daimler ...,| 160 i

Veitsoher Mag -1 192 | — 1

BELGIUM/LUXEMGOURG

' Price ' + er

Fra. J —

ARBED.

Banq Int A Lux.,. :

Bekaert B

ament CBR

Cocke rill

EBES I

Eiectrobel ;

Fahrique Nat !

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GBL IBruxLi :

G evs art ;

Hoboken ;

Into room... J

Kredletbank „^..i

Pan HWgs i

Bayer-Hypo
Beyer- Vareln i

BHF-Bank.

BMW.

Brown

Commerzbank...
Conti Cumin!.....

Daimler Benz

Degussa

Demag

D'sche BabcpckJ
Deutsche Bank...

DU Sehult:

Dresdner Bank... 1

GHH

Hapag Lloyd

Hoechst

Hoesch

Hozlmann (P)

Horton

Kail und Salz.

Karstadt

Kaufhof.

KHD„ I

Kloeekner.

Krupp

Unde ;

Lufthansa.. •

MAN I

Mannesmann *

Merced esHIg-'

Metallgesaell !

Muaneh Ruck ... '

Rhein West Elect 1
Rosenthal

Schering ,„„ 1 I

Sfamen

Thyssen

Varta„

Vaba ‘

Vereln-W st'. '. I

Volks wagon.—....

Skan EnsMIda^,. 22 G
SKFB.+ 115

St KopperbeiR— i 270 j

Sven Handel tbn. llOxi
Swedish Match..) 107 I
Volvo iFreei;...^.! 14» t

SWJTZBULM4D '

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Junes - . Price — .
. -t f r*.

AlusuiEse.„.:..+v.J 510

Brown Boveri .„! 950

Clba-Celgy I l^ao —SO

do (Part Certs)., L025

Credit SuMse.^ J .1,765

Elektrowatt .,.,.7r 7,3701 —5
Fischer (Gaol ~. J 450 + 10
Hoff-RochePtCn67,7SO .+261
Hoff-Roche lllOj 5,776)

Interfood...: ; 6,700C +25

Jeimoli 1,376) ^... ;

Landis ft Gyr^ .j B6G 1 -20'

Nestle. — 3,2861 +20

Oer>Buer|le....!.'..| l.iOO 1 —30

PiretO - 229i —2

Sendoz (B).... ) 4,125 +25

Sandoz(PtCtsf_.f • D5li —4
ScnlndieriPtCta); asa .....

Swissair ..., €9'6!

Swiss Bank '205 1 —3

Swiss Relnsce , 6,100 +25

Swiss VodtsbK 1.015 1 -5

Union Bank ! -2,900: —5

Winterthur..'. 2,350 ~ao

Zurich I ns 114,700, ~50(

financial R 2 xkI TJSW,7#J

(Discount

■ 623 f -
-483 (

629 - ...

Dalwa House sag —

Oalwa Seiko. .' ago 1 —

ED»m j 375 _

i 620 —

FUJI Bank. i 500 .

^UjiFIfm „.jl,43o - ^

+

Fujitsu Fanuc.... |4,800 +

Green Crou^ ;2,I70 +

Hasegawa -565 —

HerwaH Ea«t ....J 551 '

Hitachi -i ' EAQ +;

Hitachi Kokl 52B - +<

Honda | 7j3>

HOuaafood„. ... ..jl,G50 +

Haya "J '660- -

itch (o J-lw, *4

Ito-Ham ... * 3ao

J 8M ,+i

^ . 4 ;

Kwima i 333 I 1 Z;

K*o Soap ;;i ; 507 ;• •

Kdshlyama....^..;| aOB‘-> , ~

Kikkoman........,j • ass ■

Kirin I J TJ

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Komatsu rift ...{ 380 • — i
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Emandai- Kmes Thursday Jm»*3'1982

FINANCIAL TIMES SURVEY

Thursday, June 3, 1982

□

Shipping and Shipbuilding

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Ennesburg

Faced with declining profits, today’s ship owners and ship builders are
having to concentrate on management flexibility, finan cial sophistication and a more

accurate reading of potential markets.

Trying to cope with
soaring costs

By ANDREW FISHER, Shipping Correspondent

SHIPPING, as most owners would agree In these
fraught times erf meagre freight rates and soaring
costs, is only for those with the strongest of nerves.
Anyone intending to- enter the industry mi ght also
reflect whether they have some of the followng quali-
fications: a high degree of financial acumen, a razor-
sharp sense oftiming, and a robust constitution.

In all the major shipping markets, profits are
hard to find and too many ships are being built. A
slump on the dry cargo scene has followed a period of
prolonged malaise for owners of tankers, especially
- the sea-going gargantua built before the oil crisis.

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There are plenty of other
problems, too. The developing
nations are pressing ahwni with
'.their Unctad (United Nations
Conference on Trade and Be-
vel opment) — orchestrated cam-
paigns to share out more cargoes
between themselves and to out-
law the handy flags of con-
venience used fay many Western
and other shipowners to keep
down costs and simplify opera-
tions.

The members of the
numerous conference, group-
ings, which set the rates on key
routes such as the :Nbxth
Atlantic and to the Far East,
are finding their joint stability
increasingly rogeed by competi-
tion from cheaper -..non-
conference marauders. Even
the outsiders such as Mr Frank
Narby’k Cast company are find-
ing the going tougher, '
especially in "the midst of their
expansion programmes, . ■- Cast,
controlled in Canada and based

in Switzerland, nearly’ went
under this year.

. It was saved from sinking
with a resale package of nearly
$200m, put together by its banks
and shareholders. . Falling , dry
cargo rates had deeply eroded
Cast’s cashflow as it was still
paying for a number of ships
from yards in South Korea and
Yugoslavia.

Mr Nafby, who does not seem
noticeably chastened by his
company's recast experience, is
hopeful that the combined bulk
and container shipping opera-
tion will soon recover its former
vigour.

■ But he Is not particularly
cheerful about the short-term
state of the shipping markets.
Other shipowners around the
world generally share in the
pessimism which has gripped
the industry during- one of its
longest and deepest slumps this
century. " Until world trade,
spurred on by steady growth in

the UJ5. economy, conies to the
rescue, shipping is unlikely In
shake off this widespread gloom.

There have been healthy
side-effects, however. While the
idea of economising on fuel and
other costs ranker fairly low in
priority when bunker prices
were around $20 a ton in 1970,
their subsequent rise to well
over $200 — they have eased
below this in recent months —
has concentrated the mtTiria of
shipowners tremendously.

Fuel-efficiency is now at a
premium. Engine manufac-
turers, hull designers, paint
companies, and shipbuilders
have aH played a major part
in shaving huge amounts of
vessels’ fuel costa. The
advantages will become even
more obvious once markets re-
vive, but today’s cargo and pas-
senger carriers are certainly
not the fuel-thirsty and- fast-
steaming ships they used to be.

More and more attention is
being paid to the scrapping of
ships made uneconomic by de-
pression and changing patterns
of trade. The demolition trend
is most marked in the big
tanker sector where VLCCs and
ULCCs (very large and ultra-
large crude Carriers) are being
rapidly sold to shipbreakers in
Taiwan, South Korea, and else-
where. But the steel industry
is also in trouble, so the market
for scrap steel is flat.

The heyday of big tanker
ordering in the late 1960s and
early 1970s, before the oil crisis
irretrievably changed the
economics of shipping and many
other industries, is now - an
embarrassing memory for some
owners.

But with well over 100m
deadweight tons of tankers sur-
plus., to present needs, the pre-
sent stepped-up rate of scrap-

ping will still leave a few mare
painful years for tanker
operators.

Forty large tankers were sold
for scrap last year. Their aver-
age age was about 11 years and
several of them were equipped
with the latest safety and anti-
pollution equipment specified
by international regulations
now coming into force. The
number sold represented about
5 per cent of the VLCC fleet.

Owners who reckon that $4m
from a scrapyard is not enough
to justify a sale for demolition,
or who hope that an upturn
may be less far off than
generally assumed, have either
laid their vessels up in Norway,
Greece or the Far East or let
them be used for storage.

While some new tankers are
being ordered, the future VLCC
fleet will eventually be a lot
slimmer than at present.

In recent years, the new
ordering emphasis has been on
bulk carriers,, mainly in the
hope that coal trades would take
off in a big way. Not only has
this not happened, but dry cargo
rates generally have plum-
meted since eaxiy last year. This
has left many owners wonder-
ing how they will employ their
new ships.

There has been much talk of
owners being pushed into re-
questing delays from shipyards
on new deliveries. But this also
has a financial penalty.

Outright cancellation is an-
other very costly option. Ship-
yards such as Denmark’s Bur-
meister and Wain with a suc-
cessful balk carrier design in
the popular Panamas category
— 60-80,000 dwt and able to go
through the Panama Canal— are
in no doubt, however, that they

will soon have to find another
vessel type once present orders
run out

At this stage, it Is hard to see
what type owners will be
queuing up to order In coining,
years. It may be that they are
overdoing the pessimism at the
moment and will react too opti-
mistically when rates take an
upward turn. Shipowners have

POSIDONIA 82

THE Greek port of Piraeus
becomes the focal point of the
shipping world for a week
from today when leading per-
sonalities and organisations
from 45 nations converge for
the Posidonia 82 International
Shipping Exhibition

often been described as sheep-
like (or lemming-like) in their
tendency to indulge in fashion-
able ordering sprees or bouts of
pessimism.

R. S. Platou, the Norwegian
shipbroking firm, pointed out
recently that as many as 185
Panamas bulk carriers were on
order at the end of 1981. Be-
tween June 1979 and the same
month of 1980, orders for bulk
carriers over 50,000 dwt rose
from 3m dwt to over 13m dwt
The ordering pace dropped off
after the first quarter of 1981,
but the ships are gradually
being delivered as rates are on
the bottom. .

This is dearly reflected in
the figures for shipbuilding
orders. After the oil crisis, order
books tailed off rfiarply until
starting a halting recovery in,
1979. TMs continued ut> to last'
year when a gradual decline set
in.

Across the world, shipyards
have cot capacity sharply since
the active days of the eaxiy
1970s. some more diligently
than others.

The Japanese, still the world’s
largest shipbuilders, feel .they
have done their fair share of
contracting and now see them-
selves increasingly under threat
from South Korea where recent
stress has been on expansion.

• European shipbuilders, how-
ever, stm believe that Japan
has not cut back enough, a
char ge that meets with offended
cries in Tokyo of misunder- -
s tanding s.

But both sides -are agreed
that South Korea provides the
main threat to renewed
stability in world shipbuilding.
Korean yards like Hyundai and
Daewoo have obtained weighty
orders in the past year or so.
including some of the biggest
in the world, to date.

Major container ship orders
from Europe, the Middle East
and the UJ5. have gone their
way. As non-members of the
OECD (Organisation for Econ-
omic Cooperation and Develop-
ment), they are not subject to
direct pressure from other
major building countries which
are members of the Paris-based
body. ■

If both shipowners and
builders are paying a high price
for past expansion and dis-
regard of economic realities,
whether real or approaching,
they are now having to con-
centrate on management flexi-
bility, financial sophistication,
and a more accurate reacting of
potential markets. Today’s ship-
ping executive needs to know
as much about banking, com-
modities and international poli-
tics as about his own industry.

CONTENTS

Shipowners In Hong Kong: more cheerful
than most H

Greece: competitiveness has been eroded n

Profile: Sir Yne-Kong Pao H

Profile: Gregory Callimanopolos n

Japan: Moves being made to cat crew levels HI

Northern Europe: Battle against high costs HI

Profile: Lord Inehcape of P & 0 HI

International regulations: Attitudes harden-
ing HI

Oil consumption: Fuel costs slow down the
speed IV

Conferences and liners: Why traditional 7
methods of fixing tariffs are nnder strain IV

Shipbuilding: Japanese and European yards
face an aggressive new rival for orders V

South Korea: Now number two in the world
league V

~ - ^

The passenger market: Operators face a . ■
sharp rise in Caribbean capacity by 1985 V

Tankers: The number of vessels being sold :

for scrap has been speeded up VI

i ; —

Bulk carriers: How will operators survive the ;

next year or so ? . VI

Shipping financiers: Taking a wary view VI

V

hlnancial ’i lines xnursoay June

WORLD SHIPPING AND SHIPBUILDING II

Here and on the following two pages, FT correspondents examine worldwide shipping prospects

HONG KONG

More cheerful than most

AN AFFINITY with shipping
comes naturally enough to a
territory whose 1,000 square
kilometres have virtually no
natural resources and whose
economy is geared more than
any other to international
trading. Indeed, the historic
purpose behind Britain taking
Hong Hong was its potential
as a base for trading up the
Pearl River to Canton and along
the ' China coast towards
Shanghai.

But Hong Kong’s shippers of
today look far beyond the local
perspective. By 1980, its fleet
was second only to the United
States, overtaking even that of
Greece, according to Sun Hung
Kai, stockbrokers.

Hong Kong has now lost one
of its great shipping veterans,
Mr C. Y. Tung, who died last
month of a heart attack. Sir
Y. K. Pao, Frank Chao of Wah
Kwong, and he were the local
triumvirate to which a fourth
name must now be added —
George Tan’s Carrian Group,
which last year built up a fleet
from scratch to 1.7m deadweight
through a series of character-
istically complex deals which

left Carrian in control ofjhe
67-ship Grand Marine Holdings.

Protection

While Hong Kong is generally
thought of as a volatile and
speculative place for business,
its shipowners have generally
taken steps to protect them-
selves as far as possible from
the vagaries of the market
Long-term chartering, particu-
larly a now-outmoded relation-
ship with Japanese shipping
companies which is known as
* v sbikumisen,” has been
•preferred.

The essence of shlkumisen
was that, when a Japanese
operator required a ship, he
would arrange that it be
ordered from a Japanese yard
by a foreign buyer who would
then charter It back on a long-
term basis to the operator at an
agreed rate of profit to the
foreign party. For the Japanese
operator, offshore ownership of
the ship gave tax advantages,
while to the offshore — typically
Hong Kong — owner, there was
the advantage of a guaranteed
income to pay off the ship, and

a written-down ship left at the
end of tiie process.

Shikumisen deals peaked 10
years ago but they helped estab-
lish Hong Kong as a shipowning
centre. The territory's shipping
firms must now cope with’
shorter charters and duller
worldwide markets but they are
proving themselves relatively
proficient in doing so, not least
because of the sophisticated
financial and communications
infrastructure of their home
base and its favourable tax
climate.

Hong Kong has also not been
too cruely exposed to the float-
ing junkyards which the giant
oil-carriers have become. The
favoured local fleet vessel is the
dry bulk carrier, whose cargoes
of grain and coal have helped to
provide a relatively firm market.

Despite the overhang of
tonnage, Hong Kong shipping
groups are still building and
buying, with China proving an
interesting potential market for
both construction and charters.
In sum, things may not be all
that cheerful in Hong Kong but
they are probably a lot more
cheerful than elsewhere.

Robert Cottrell

GREECE

Sir Yue-Kong Pao— he has the
ear of world leaders to a
degree that surprises
diplomats

Brilliant

manager
of ships

Plans for

further

expansion

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SIR YUE-KONG PAO and.
water have a close and har-
monious relationship. Each
morning, Pao goes for a
methodical, relaxing swim.
For the rest of the day, he
runs the world-wide shipping
group which Jives up to its
name by spanning the globe
from London to Panama and
Bermuda to Hong Kong.

Shipping and property are
the two worlds in which the
good years make possible vast
capital gains from gearing up
on assets against modest
initial capital.

Sir Y. K. Pao, now 64, fled
Shanghai in the 1949 Com-
munist takeover and found in
Hong Kong the good years
which, within three decades,
catapulted him into the first
rank of world shipowners,
with an 8m ton fleet; held
through his quoted company.
Wo rid International, and per-
haps 20m tons in all, counting
in his various, unquoted,
interests.

~ It has often been said that
Sir Y. K. Pao thinks more
like a banker than a tradi-
tional ship operator. He has
certainly attracted the Slip-
port of the Hongkong and
Shanghai Banking Corpora-
tion, by far the largest local
bank, which not only has
stakes in Pao’s quoted and un-
quoted companies, but has
also made him its non-execu.
Uve deputy chairman.

The bank has stood by Pao
for over 20 years now, since
he began his empire-building •
in conjunction with the local
Wheeloek Marden group, and
then discovered the joys of
“shlkmnlsen w as the way to
building a fortune on
Japanese custom. Now, his
eyes are turned hack towards '
Ids former homeland, where
he has placed newbuilding *
orders and established a
joint-venture company.

Pao’s greatest public failure
has been his abortive attempt
to -merge his quoted World
International with the pro-
perty-heavy Hong Kong and
Kowloon Wharf and Godown.
In one legendary weekend,
Pao raised HK$2bn to wrest
a controlling stake in Wharf
from the European establish-
ment But Ms attempt to
effect a fall merger with
Worldwide was shot down last
September by minority share-
holders.

That aside, Pao has shown
himap if a brilliant manager of
ships and money, choosing
charters to cover capital
exposure. He has the ear of
world leaders to a degree that
surprises diplomats, two sons-
in-law to take key positions in
running his businesses, and
an undoubtedly vast fortune.

ROBERT COTTRELL

Gregory Callimanopulos, who
heads the largest Greek-flag
liner fleet in the world,
spends six months of the year
in New York which be finds
“very anfl stimula-

ting.” The rest of the Time he
is travelling around the
world or in Greece, where
his Hellenic Lines company
is based.

Hellenic also has a big UJS.
office and is nearing the end
of a 2320m expansion plan to
boost its presence in con-
tainer trades between North
America, Europe, thq Middle
East, Africa and India. Most
Greek shipowners are in the
tramp business, faking
cargoes as and when they
come.

Mr Callimanopulos, 46-
years old and Princeton-
educated, admits that
Hellenic is atypical of Greek
shipping. Early next year,
after the delivery of another
new sMp and four conver-
sions, it will have 15 full con-
tainer ships.

Tempting offer

The family also has a tramp
operation In Greece with 18
hulk, combination and oil
carriers. There are inter-
. national oil trading activities,-
too, and an oil and gas
drilling company in the U.S.
When Mr Callimanopulos took
over the operation in 1979
after the death, of his father
Pericles who built: up Hel-
lenic, he decided to diversify.
Recently, the group turned,
down a tempting offer to buy
a film company.

Mr Callimanopnlos still has
bis eye on further expansion,
looking beyond today’s less
than thriving shipping scene.
Hellenic is contemplating
whether to order three large
roll -on/ roll-off container ships
at $27m each from South
Korea, Japan or possibly
Brazfi. These would he used
on existing Hellenic routes.

The Iran-Iraq war has not
helped Hellenic recently. Its
ending “would be a great
enhancer for the shipping
trade.” The reconstruction
needs of these two populous
countries could lead to a large
amount of new business.

“I’m working too much,”
said Mr Callimanopulos, who
misses the dose involvement
with shipping detail he had
before the group grew to Its
present size. He relaxes
aboard a 140-ft yacht, the
Celestial, if sports like scuba-
diving, spear-fishing, water-
skiing and windsurfing can be
called relaxing. He also likes
tennis. “I try to keep fit— in
mind and body.”

ANDREW FISHER

PROFILE: ATLE JEBSEN OF NORWAY

Man on the move

ATLE JEBSEN, 46-year-old
president of the Norwegian
Shipowners’ Association and
chairman of the country's ship-
ping employers’ organisation,
leads a family shipping and
business empire, headquartered
in Bergen, with offices scattered
all over the globe. A typical
working week could see him In
London on Monday, New York
on Wednesday, and Oslo on
Friday.

A genial cosmopolitan, Jebsen
speaks perfect English —
probably reflecting the three
years he spent reading
economics .at Queen's College,
Cambridge, from 1956 to 1959.

Some of his earliest business
experience was gained during
the long vacations, when he
worked in the UK offices of the
family shipping company.
Today, about a third of the
Jebsen fleet is UK-registered,
and the group’s offshore drill-
ing subsidiary, Jebsen Drilling,
is UK-based.

Jebsen’s shipping education
started long before his univer-
sity years— he says the business
fascinated him from childhood,
when his father would take him
j down to the quayside to visit the
! family's ships, and breakfast
table conversation would be
about freight rates and market
trends.

Fate put him at the helm of
tiie family business — Kristian
Jebsen's Red eri— when he was
only 32, following his father’s
death, in a railway accident

The company has flourished
tinder his leadership — among

other things, . unlike many of
his Norwegian colleagues, he
moved out of the supertanker
trade in good time. Four large
tankers were sold in 1967, and
the company’s last 9b, 000 tanner
was disposed of in 1969.

Since then, the Jebsen fleet
has consisted mainly of small
bulkers, from 30,000 to 40,000
tons. At present, all are
working— and making a profit.

Jebsen insists, however, -.hat
this is not only due to good
management — “ there is a
strong element of luck in the
shipping game,” he says.

Bargaining

As president of the Shipping
Association, Jebsen has the
task of bargaining with the
Norwegian authorities lor an
improvement In the industry’s
working conditions — greater
freedom to operate Under
foreign flags, for instance, and
less stringent manning
regulations.

Even though Norway now has
a Conservative Government, the
climate is not favourable
for concessions— -the Hflmar
Reksten shipping scandal has
tarnished the industry’s image
in the public minds.

Jebsen feels this is unfair,
but takes it in his stride—** we
are making some headway.” He
appears to enjoy every facet
of his work— and has energy,
left over for a variety oE
strenuous sports, from jogging,
squash and skiing to elk
hunting and salmon fishing.

FAY GJESTER

Busy Greek tycoon Gregory
Callimanopulos also finds
time to relax — he iik«? tennis,
scuba-diving, water-skiing and
windsurfing

THE UNION of Greek Ship-
owners likes to describe the
Greek-flag merchant marine as
the “ taxi service " in the world
freight market Only a few
Greek owners enjoy the advan-
tages of fixed-route, fixed-rate
conference operations. Most of
them live from tramp work.

This : underlines the anxiety
in Piraeus over preservation of
the (keek Sag’s international
competitiveness and the public
warning served- on the Govern-
ment by the UGS president
Aristomenls Karageorgis — that
the continuing world recession
is a threat to' the survival “ not
so much of Greek shipping as
of the Greek flag.”

On the one hand, a succession
of animal wage increases
exceeding 20 per cent has cer-
tainly eroded and may have re-
moved the traditional edge in
operating costs maintained .by
Greek shipping over such com-
peting fleets as the. British.

On the other, neither the
new Socialist Government nor
the Conservative administration
it ousted last October has been
prepared, in the face of Tesolute
apposition from the seamen’s
unions, to sponsor the covering
legislation that would- help
Greek-flag owners to economise
on crewing costs.

In conjunction with an air of
uncertainty' and' nervousness
over Government intentions in
general, this reluctance to re-
ward Greek owners for their
loyalty to the home registry may
already be having its first
repercussions.

iu UIV B

taking CautlOOS

Latest Merchant Marine
Ministry figures, dated to March
31, show a fall in the previous
12 months of 3.4 per cent in the
number of Greek-flag ships mid
0.37 per cent in tonnage, from
254 vessels inscribed on the
registry and 388 removed. Pre-
viously,' the tonnage total had
been rising, if only marginally,
because tile ships added were in
general larger than those with-
drawn.

Owners afe cautious in draw-
ing conclusions, partly because
of the absence of reliable infor-

mation mi the number of Ships
taken off the registry for scrap-
ping rather than for transfer to
other flags.

But it is believed that some
movement to other registries is
taking place and that this could
become more pronounced in- the
next few months unless condi-
tions improve.

The latest figures record, a
Greek-owned fleet of 4^257 ships
of 49.66m tons, with 3,801 ships
of 41.45m tons under the blue
and white Greek flag and -456
ships of 8.2 lm tons inscribed
on other registries.

At the same time it is esti-
mated that nearly 20 per cent
of total Greek-owned tonnage is
now laid up and awaiting em-
ployment •

Under Greek law tax is pay-
able only on ships that are trad-
ing, so there is obviously , noth-
ing' to be gained from switching
the flag on a ship that is laid
up, while fear of sea pollution
from idle ships has made local
authorities willing to provide
anchorages.

In any event the limited
space is not available to ships
of non-Greek ownership. There
is also a suspicion that even
. among Greek-owned tonnage
the Greek flag indicates better
service.

The implication is that the
Greek flag may prove a better
one for refuge than for trad-
ing under whenever the inter-
national freight market im-
proves.

Whether an eventual freight
recovery leads to an accelerated
drift from the Greek flag will
depend to a large extent on
Government actions meanwhile.
There is no doubt that Greek
owners are carefully examining
their options, even if they are
not currently moving out of the
registry in significant num-
bers.

After some uneasy first
encounters, shipowners have
now regained their confidence
that their contribution to the
Greek economy in terms of em-
ployment and foreign exchange
inflows is appreciated. They
have received a series of assur-
ances both on general and speci-
fic issues.

They have been told, for

example, on. the question of the
“genuine link" . issue— owner-
ship, flag, mid " company— that -
they have no- cause for JflffBQp*
and thev have received promises
that two Sills now before the-
Greek -Parliament will he-
amended along the lines they]
have suggested before enact-
ment- -

One Bill, pn investment InceijL.
tives, would place difficulties in-',
the way of - continued fihsjt
financing out of Piraeus, tile
port- -or - Athens, through - an
article that may have beem
worded. “inadvertently^.
Another, on trade union free;,
doins, is seen as opening the_
way to a Comzntmist take-ova*; .
of the seamen’s unions/

The Government has been told'
of the owners* “grave concern?
about the union legislation,;
which as drafted would enable
a strike to be called by a .union.-
meeting in Piraeus.’ Observing
that nine-tenths of a union's'
membership is at sea: at any
one time, the owners insist that
a strike call should requires-
canvass of all union members^
and even then should be far-fe.
restricted area, as trader Bn*
tish law. ' ’

The Bill as drafted.- thj*.
owners say, would permit a ig*
latively small group of union
members politically affiliatecTto.
the extreme Left to obtain ife-*
proportionate power. r.'ss

The owners are waiting to see
whether the asurances offered
on such Issues as there will^be
transformed into.' legislation
that will help to re-establish an .
industrial relations climate m
which the Greek registry - can
continue to flourish. The crew: -
ing issue has to be examined in.
in this context
Greek law sets a maximum 25
per cent ’ alien proportion o£,
crew in a Greek-flag ship. While'
this may work, out in practice,
at a 40 to 50 per cent altai;
proportion of lower-deck seamen
(the officers are almost invari-
ably Greek) it still bidders effect,
tive implementation of the
bilateral - . crewing accords,
already signed with the sea-
men’s unions of a number of'
developing countries. ... .

Victor Walker

nowservesyoti

worldwide.

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GEGC contribute substan-
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the past 8 years.

These financings m ade pos-
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flag tankers (VLCCs), other lyi
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To. learn how GECC can
be of help in meeting your
needs, contact our consultant

in the UJKL, Mr. Shapiro, or
Mr. Harahan in thell&A.

MtTHarahan,GECC r
3001 Summer Street
Stamford, CT 06905 USA
Me A. L. Shapiro
Marine LencUease Bermuda
C/O Ma rin e Lendlcasc UK Ltd.
Three Quays Tower Hill

London EC3R6DS

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-Thunday June 3 1982

WORLD SHIPPING AND SHIPBUILDING III

JAPAN

°de(j

• oa the ci,,.

Partiaa,^,

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ie-tenths 0 f r*t

bip is a t '

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as drafted

ay. would n!t3 *

1 Politics Hr aflfl- *

me Left fo^S?
>nate pbv:er° bQ ®‘

^ners

,*he asurancesi

s !es ,« >■,««*

1 relations nS

* G/eek -**?.

to flourish IVi*
has To be
ontexr ^

law -set? a maxiiaj.

: a'* c * pnpraj*

iGrc^.£ 2?sai?t _

ci.. ia ...
to 50 per ,
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-*l!h t."r ;
UOU> of - r. -.rr-

3:5 cour.:r:e*.

Victor Wafc

Moves to
cut crew

J^^AN.HAS'ozie of the largest
me rchan t, fleets in the -world,
actsumtms ;f rar about a tenth' of
Iritertiafkmal shipping. But in
tfcepastJtew years, ' a growing
number Of the .'vessels used by
shipping -, operators has been
chartered. - By .1980, it had
reached.', ^nearly-, half .: .against
under a thiid 10 years before.

-Fleet sires .differ considerably
depending on • bow - r they- -are
mttmeM--ind m win measures
them Xloyd’s Register of Ship-.
Bing, put the size -of the national
flag fleet at -nearly 41m gross
tons last July, a slight drop over
the- previous year. - This com-
pared. ' with '- 75m . tons for
Liberia, the World's largest fleet
but a flag of convenience
country, and 42m for Greece.'

Tltifee all developed countries,
the -Japanese have found ship-
ping to be an increasingly high- 1
cost operation:-' So the Govern-
ment and shipowners have been
wasting on ways • of lowering
crew levels and stimulating the
development of newer aiyj more
efficient types of Cargo vessel.

-■Up to April this year, the
Government granted a special
interest rate . subsidy to en-
courage; owners to order new
ships. In. .part, . *Mk reflected
official concern that - too many
Chartered ships were coining in
t&. augment those - under the
national . flag.- In . the last year
of; the three-year ' programme,
only energy-carrying ships such
as gas, coal ; and .oil .carriers
were eligible.

..... . owners have made
gtjeat. strides in developing ad-
vanced shipping ' methods, ai»
flbpugh these, are. not always
e&sy to get through the unions.
So-called “ M-zero ” ships; where
unmanned operation of the
engine ' is possible, represent
about. twoSiOvj in number . and
three-fifths in tonnage of total
Japanese flagJvessels.

A special committee, was set
up with - government, industry
add* -tmion -representatives to
see- -what eould- be- -done to
rationalise crewing operations.
After a year of what the Japa-
nese called “experiments by
shadow . play.” crews of 18
people are being tried out on
cargo ships which had pre-
viously had -22 people. Some 14
ships are being used for this.

Japanese shipbuilders, in
their search for Increased tech-
nological strength, are studying
how ship operations can be
more highly automated add also
how building methods can be
made more productive. How
this will spill over into the way
the fleet is run remains to be
seen. „

Certainly,, both the . Govern-
ment and-' shipping companies
are Jceeny aware of the indus-.
try’s importance for a. country
needing to import _such .quanti-
ties of vital raw materials and
energy.

ajf;

NORTHERN EUROPE

against

costs

THE- HIGH COST fleets- of' . crew levels -in other fleets are
. Northern .. Europe .are at least 25 per cent more

struggling hard to stay oom> than those in their own

■■ petitive. ' . With the tanker country.

and dry cargo markets in a West Germany is also experi-
- slump ‘and world- trade menting with lower crews. In

' recession affecting major * Britain, where the size of the

: container hues, they are -fleet has dropped alarmingly

more and more emphasising
quaHty against quantity. Only
through more sophisticated
ships and methods of
'management, the argument,
goes, can an adequate earn-
ings base be maintained.
Reacting against the high level
of crew and other costs when
, set against the other' major

- shipping areas like Hong

Hong,- -countries such as
Norway,, Sweden. West

Germany and the UK have

- been trying to reduce .

inarming as much as possible.
Flagging out or using cheaper
.flags, often in- partnership
with operators elsewhere.- is
another strategy followed or
contemplated by companies.
Norway and Sweden are the
countries which have

- achieved most in. lowering

manning numbers. Union

■. leaders in Norway reckon

since the mid-1970s, ship-
owners are looking closely at
working- with smaller crews.

Unions 9 views

Not . surprisingly, seafarers’
-.unions tend to resist moves
to. speed up any reduction
in their numbers. But rising
unemployment at sea has a
- double effect. While unions
•_ are against adding to this
through maiming cuts, 'they
have to weigh up ' companies’
views that these arc often
necessary to keep their
operations in the black. ' .

In Norway, much of the cun-
rent shipping talk is. of flag-
ging out. But major owners
are wary of such flags of con-
venience . as Liberia and
Panama, mention of which
tends to stir up strong emo-
tions in developing countries.

■Instead, they are likely to
Choose registries which have
pot been framed -just with the
idea of enabling owners to
cut crew costs and taxes.

About one-twentieth of the
Norwegian fleet is currently
flagged out, but the propor-
tion could rise much .higher
in 'the next few years. Norway
has' a merchant fleet of some
38m deadweight' Tonnes. '

In Britain, the 28m dwt fleet-
down from 50m in- 1975-
accounts for just over 4 per
cent of the world total, less
than half its share of six
.years ago.

Investment has slackened off
- sharply in recent years and
the industry wants the
Government to sil up and
take notice, mainly in the
form of fiscal incentives to
order new ships. The Falk-
land crisis has highlighted
the importance of a healthy
fleet in defence, terms, and
the industry will certainly try
to capitalise cm this in coming
months.

Andrew Fisher

PROFILE : LORD . INCHCAPE OF P St O

An emphasis on flexibility

BRITAIN'S higgest: shipping-
company, p eninsular and
Oriental Steam Navigation
(P & O), has been pitched
about on- some rough p»mwh»i
was in recent years.

Y Its- chairman during these
stormy times has not been a
back-slapping extrovert of the
type often associated with the .
jshlppfnfr world, but a diffi-
dent Sussex-born Scotsman.

‘ - Kenneth • . James William
Hackly, the third Earl of
Incheape, was bom two days
after Christinas nearly 65
yean ago. and educated in the
traditional fashion of his class-
at Eton College and Cam-
bridge Votverslty where he
studied law. Somewhat owlish
in appearance, he does not
take easily to the glare of
publicity and P & O has had
' plenty of that in its time.

; Underneath Lord Inch cape’s
reticent 1 manner, however,
there is a toughly determined
approach to business. He
believes less in management
techniques t han in pragma-
tism, 1 With individual
managers ideally allowed to
operate freely in line with
stated board objectives.

“Survival and growth
depend to a great extent upon
flexibility,’* he feels. .

. Fbr more than ayear. Lord
buheape has been a non*
executive chairman. He was
at tiie executive helm for 2}
yean from autumn 1978 after
F;~& 0*s profits had slumped '
and Its- debts -were soaring.
Having invested £40ton in
new tonnage, - it was. being
hurt badly by . the- shipping
recession. v - - .'

■Lord 7 Incheap e,- -who also
runs the Inchc&pe trading
group, became P & 0’s ehair-
‘'man in : Jatraafy. -1933 ; after- -

strongly opposing the abortive
merger with Boris.

P & O later took over the
construction group, itself-.
Sandy Marshall, who became
chief executive and had also
been against the merger, later
became a casualty of Lord
Incheape’s firm grasping of
the reins. V . ■ ,

He left with a large golden
handshake In 1979 . after the.
group shifted from expansion'
to survival. It sold major oil,
shipping and property assets,
and saw borrowings fall to a
more manageable leveL
Profits remained erratic,
though the. 1982 resalt
brought less of a decline than
expected .. after a strong

second half.

The group felt confident
enough to order a new £80m
cruise ship from Finland this
year. Bnt the Falklands crisis
has disrupted operations as
four ships,' including - the
Canberra and -Uganda cruise
liners, have- been called up
by the Government
.'While .Lord Incheapc, a
lover of outdoor pursuits such
as riding and hunting, may
prefer to avoid the glare of
publicity, P & O itself is in no
position to do so. Last year,
it was persistently rumoured
that Hong Kong interests
were on the takeover prowl.

AJF.

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ATTEMPTS to radically
restructure international ship--
,ping in keeping with the
principles of the “ new economic
order ” are gathering pace. The
elements for an intenational
regulatory framework covering
all the fundamental aspects of
shipping are on the agenda of
Unctad’s (United Nations Con-
ference on Trade and Develop-
ment) shipping committee.
However,- the progress made so
far dlf^uises a hardening of
attitudes birafl sides.

International, as opposed to
national, regulation of the com-
merce of shipping is a relatively
hew phenomenon spearheaded
by two UN bodies. The Inter-
national Maritime Organisation
(QfO) deal? with technical and
-safety issues’ and is beginning
to have considerable success in
getting its international conven-
tions . into force. Unctad’s
shipping committee is becoming
the ground for an increasingly
bitter confrontation, between the
Group B ; . developed countries,
oh the one -side, and the Group
of 77 developing countries and
the socialist bloc on the other.
At issue .is the means by
which developing countries can
increase their participation in
world shipping.- The target is
20 per cent .by- 1990.

In brief, the developing coun-
tries believe there are structural
barriers - to' ' their increased
participation necessitating a
legal regime guaranteeing them
shares of their own trade, and
other kinds of support, while
their infant and often sickly
shipping. euterprises fiDd their
feet.'j : \

The three major elements of
the regime being pushed at
“Uhctad; ate;- a code of: conduct
for liner conferBnces'-tp guaran-
tee ecfuaL' flag, shares in the
liner " '.'timres Y for . bilateral -

partners;, some'. slmilAf protec-
tive measure for bulk trades;
and the ending of the open
registry or 7 flag of convenience
system. The liner code is almost
on the books. The European
countries axe. on a .co-ordinated .
schedule for the necessary
national' enabling legislation.

The reason for European
acquieaceQ^. aibeit^reluctant, is
that it largely legitimises the
status quo. The Europeans ex-
pect OECD .countries, . who
account fbr -the Eon’s share of
liner trade, to display the code
by reciprocal agreement. In
many of the other trades,
developing countries have
already unilaterally reserved
cargoes for their flag vessels.
On the other hand many devel-
oping, countries do not havdt. and
will not have in -the foreseeable
future, enough ships to carry
their theoretical entitlement
under the code. (40. per cent
shares - .-are - -suggested for
bilateral, partners with the rest
for third flag carriers).

However, things are rather
•difierent-with-lhe open registry
question and bulk cargo sharing.

where Group B are less inclined
to compromise. Open registry
tonnage has grown considerably
over the past decade from
roughly.20 per cent of the world
fleet to more than 30 per cent.

The developing countries hold
that the massive investment
represented by open registry
tonnage would have gone Into
developing country fleets if
there had been no open regis-
tries- . They,, backed by the
socialist countries, - .wish to
establish an international con-
vention on ship- registration
which, would create a gen nine
link between vessel and country
of registry. This would consist
o£ establishment of the shipping
enterprise . in the proposed
country of registry

On the economic side, the
Group R countries believe the
open registry system has pro-
vided cheap transport and a
free market in the hulk trades
as well, as a traditional presence
in shipping that they could not
have maintained operating
solely under their' own flags.
Elimination of open registry
together with the linked issue
of bulk cargo reservation would
only - increase transport costs
which would hit developing as
well as developed countries. In
the liner market with its fixed
schedules and routes and often
roughly balanced two way
trades, bilateral cargo jsharingr
need not be. too painfiti. In
the bulk, trades it would be
disastrous .since few. bulk car-
riers work shuttle services and
those that do normally travel
empty on one leg. .'.The need
fbr developing countries, par-
ticularly large importers of
grain, to acquire bulk tonnage
; to. avoid crippling foreign
exchange payments oh chartered
tonnage is recognised..

On the domestic regulatory
front, but nevertheless with
enormous international ramifica-
tions, important changes are
pending in the way liner ship-
ping is regulated in' the U.S.
trades and in tiie .EEC.
Proposed legislation . going
through the U.S: Congress with
fee blessing of the Reagan
Administration, would legalise
dosed- conferences in the liner
trades. This would bring the
U.S. trades in line with the rest
of the world. Previously, arid-
trust philosophy- has only
allowed a looser arrangement of
-lines — open conferences— and
even .these have been the
subject of i n crea si ng presstsre
from the Department of Justice
in -the last decade. The result
had been a serious conflict
between the U.S. and . its
trading partners.

At the 9ame-,.tsme the EEC
has been obliged to apply the
competition rules of the Treaty
of Rome to . shipping. How this .
,is to be done has been the. sub-
ject of an agonised debate be-
tween the industry, the
shippers, and . the- EEC Com-
mission for several yeai^s.

Ian Middleton

that is a solid one dag

The cargo in
question is energy,
and it's coal from one
destination. Crude

oi/. from another. And more and more
often, liquid propane gas as well.

You deal with it by building
ships: Special carriers designed to
■cany these energy fuels in a safe, efficient
manner. hJYK has
these types of ships
in service now.

More are planned .

as energy needs change and newer energy sources are discovered.

At present Japan derives about 70 percent of its energy requirements from petroleum.
Other nations too rely too heavily on petroleum. And
that’s not good. .We’re recommending that reliance of 1 1

petroleum be cut back by using alternative fuels. That’s
why we are operating coal carriers, LPG and crude oil
carriers-^and planning newer fuel carriers.

We know this is not the complete answer to the
energy problem, but it’s part of it. It may be part of r A
yours too. So why not give us a
calL Let’s work
together by
diversifying into
other sources
of energy ■
because we
have the kind
of ships to
carry the
fuels safely
and

efficiently.

Charting a course
for tomomwas well as today.

\ | ■ Hnd Offlca: Tokyo, Japan ■ London Branch Office P & O Bldg. 9th Floor, 122-138 Leaden hall SL London E.C. 3V 4PB, England, U.K. Tel: (01) 283-2099

V . Other Ovarwea Offices in Europe: ■Parte Tel: 28S-1900 ■Milan; Tel: B03348 ■ Dfi»saWori:Tolr84l5t * Hamburg: Tel: 3S 93-1 -

11 , 000,000

deadweight tons of capacity

140

42

years e>$)erience

good reasons
why you should talk to us
about shipping

C.Y.Tung Group of Companies

r:SY-

V,

36

Financial Times lixursday- June 3 1982

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computerized operations and traditionally dedicated people.

The power of priceless experience gained in over 60 years of
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General Agent in the U.K. and continent: Kawasaki (London) Ltd., London Phone 01-638-3486

Kline

, KAWASAKI RISEN KAI5H.A. LTD

TECHNICALLY SPEAKING, ANY SHIP
OPERATOR WILL APPRECIATE
THE FOLLOWING CLEAR CUT POINTS

LIT CUTS SHAFT SPEED

3. IT CUTS THE FUEL BILL

pie RTA Superlongstroke
is. a range of cross-
head engines
developed as
, simple direct drive
to provide much
as for an efficient

speec

installations
lower shaft
propulsion.

The ‘Superlongstroke’ results in shaft
speeds of down to 70 rev/min. •

This allows for a simple direct drive with
the optimum propeller efficiency together with
an adequate stem design, thus producing the
same ship speed for less power and less fuel.

Therefore, the ‘super 1 low shafts ^ .
speed and the ‘super 1 low specific
fuel consumption of the RTA.

Superlongstroke together repre- .
sent anew generation of fuel saving prime movers,
cutting a further 10% off the fuel costs.

This will help the ship owner restore the
economic balance of his business, seeing how the
share of the fuel costs in the overall running of
the ship has grown to such enormous importance
over the last few years."

Efficient use of fuel energy in marine trans-
portation requires the most outstanding fuel
saving prime mover on the market.

That engine is the RTA. Superlongstroke.

THE RTA SUPERLONGSTROKE

2. IT CUTS SPECIFIC FUEL CONSUMPTION

4. IT CUTS ENGINE LENGTH

The RTA Super-
longstroke pro-
duces the shipping
, worlds lowest
specific fuel con-
— _ sumption: with a

thermal efficiency of over 50% the engine gets
down to 123 g/bnph at 100% load or even
122 g/bhph at 85% or 90% load.This is the result
of the super long stroke with high scavenging
efficiency and die utilisation of well-proven
Sulzer technology in high maximum com-
bustion pressures.

DM »2.4*-l

in

NOW CUT THE COUPON

But does the
greatly increase*
stroke mean an^

over-large JA jP^engine? The

answer is No. connect

design of the. RXA Superlong-

stroke makes it shorter than other engines of
comparable performance. The ship owner can
gain up to two metres of additional cargo
space.

The shorter RTA, therefore, gives the ship
owner a net profit in cargo capacity or a'

corresponding saving on
capital expenditure.

il

I Dear SulzeiiJ’d like to hear more of your u

clear cut arguments for the JOA Superlongstroke. I

Myjume „

My c omp a n y name and addrw

I
I

Sulzer Brothers Limited, CH-340I Vmterthui; Switzerland,
1 Teles 896165 SUL CH.

SULZER

My company positic

I

I

WORLD SHIPPING AND SHTPEUILDING IV

Enginemakers are aiding for designs that cut oil consumption

Fuel costs slow the speed

SHIPPING COMPANIES' are
hard-pressed to make money
these days, but saving .it has
become a top priority as freight
rates stay low and operating
casts increase.

Ships are rarely designed
for speed -now; economy takes
pride of place. Engine-makers
have made important strides in
the' area of fuel efficiency.
Designers have ensured that
hulls are . smoother, while
special , paints have been deve-
loped to minimise friction.

With fuel oil prices showing
massive leaps since the 1973
oil crisis, shipowners have been
forced to look closely at costs.

For many of them, the mes-
sage was slow
through. But major
engine manufacturers like
Sulzer of Switzerland and
Burmeister and Wain (B&W)
of Denmark have had world-
wide success with their
economy designs, which are
being steadily Unproved.

Shipowners are also keen to
save on manning costs, a more
sensitive area in view of
declining employment for sea-
farers, especially in the West

Swedish and Norwegian com-
panies have successfully intro-
duced lower crew levels on
ships — ofter specially designed
to need fewer people — and
West Germany is also experi-
menting along these lines.

In Britain, progress has been
less rapid, though the industry

is promoting the idea actively.

Compared with engines of
seven to 10 years ago, the new
generation offers a sharp drop
in daily fuel consumption for
a ship of up to 28 per cent, said
Mr Peter Sulzer at this year’s.
Seatrade Money and Ships
conference in London.

The executive vice-president
of Sulzer International made
the point however, that "fuel
saving has its Price.” More
efficient engines cost more
money and the shipowner has
to balance this against the
potential fuel savings.

At the turn of the year, Sulzer
proudly announced its new RTA
hi Superlongstroke engine, which

diesel >t claimed could knock a further
10 per cent off vessels* fuel bills.

The engine will be about. 12
per cent more expensive than a

and gas moves around the
engine.)

Sulzer, advertising its new
engine with an axe slicing
through fuel bills and consump-
tion, is maintaining , a dignified
Swiss stoicism about the aggres-

sive poser from B&W (now diesel systems.

capital naval vessels in both size
and speed* with container, ships
as big As aircraft carriers and
running at over 30 knots."

. Major container lines have
since been re-engining their
ships with modem and cheaper

part of West Germany's MJlN.)
— “Can our major competitor
avoid teething troubles when
finally converting ' to ' the
superior Unifiow Scavenging
System? ”

Sulzer says its design has
been well received; especially
by the Japanese. Altogether, 13
RTA engines are now being
built, two by Sulzer itself at its
Winterthur headquarters.

• Savings can ateo be made on
the passenger side. P & O is
installing an engine, of French
PielstEck design on its expensive
new cruise ship to be built in
Finland. Older passenger liners,
designed to go long distances at
great speed, have engines winch
are very cosily to rim at -todays
fuel prices.

One leading Hong Kong
owner, Mr Frank Chao, presi-.

recently that it had firm orders
for . six. RTA . engines and
intended to be the first to com-
plete one next March. Sumitomo

accounts for about a tenth of
the total ship cost, -the ultimate
extra expenditure would be rela-
tively small. The RTA is also
shorter.

comparable one from the pro- . ^ris^^i^^mTHeavy
sent range. But since the engine jndustries (mi) are also on the

list of constructors as is Yugo-
slavia. - China has expressed
interest in buying as well.

What about the viewpoint of
shipowners? Ever since the oil
crisis, it is diesel rather than
the more fuel-thirsty steam tur-
bines which have been at the
forefront

Up to' 1973, according to Mr
John Parker, deputy chief
executive of British Ship-
builders, at the Seatrade confer-
ence, “we saw the. larger
merchant vessels vying With

A riposte

Sulzer 1 s new design has drawn
a snorting riposte' from B&W
Diesel in Denmark. It charged
the Swiss group with adopting
B & W*s long-established uni-
fiow system and abandoning its
own loop-scavenging method.
(The terms refer to the way air

Mitsubishi, a licensee, said- dent of Wah Kwong, has spefied
- • - - ' out just how big a saving ia

fuel use can be gamed with a
B add W engine against a steam
turbine. i ■■

He took, as an example; a
260,000 deadweight ton tanker—
the type of ship now increas-
ingly redundant in ..shippiug
markets— built in 1973. - With
steam turbines, it would - use
about 170 tons of fuel a. day at
foil speed. With the diesel, it
would be 95 tons for .a saving
of 75 4ons worth, around $33,590
daily or $405,000 for a long
voyage. .

Depressed

Why traditional methods of fixing tariffs are under strain

liner

code

WORLD seaborne trade in tht
decade 1970-80 rose 44 per cent.

In the same period shipping
capacity increased 110 per cent
This stark if oversimplified
comparison shows why ship ping
generally is in a parlous state.

It would be idle to pretend that
the liner. sector has suffered to
the same extent as the tanker
and dry bulk sectors, but in-
creasingly complex pressures,
economic and political, have
made profitability thin and even
negative on the major trades.

Major advances in economies
of scale and handling methods
have created their own prob-
lems in terms of the amount of
capital Investment needed in
modern liner shipping, while Middle East
national and international legis- lying trends
lation threaten to transform a
traditionally self-regulating in-
dustry into a highly regulated
one.

The container ship, Nedlloyd Delft returning to service fol-
lowing re-enginlng from turbine to dieseL Her sister ship,
Nedlloyd Dejima is also undergoing conversion and "doe
back in service shortly.

tainers Ltd).

The oil crisis which dealt
such a savage blow to the
tanker market, at first seemed
to have had little knock-on
effect on the liner sector. In
fact the recycling of petro-
dollars led to a boom in liner
trades, particularly to the
However under-
were working
against the liner operators.
Order-starved shipyards built
ships at give-away prices.
Smaller bulk carriers were

interests to consult on major
decisions, such a complicated
and often archaic tariff struc-
ture, and they axe unable to
react quickly to changing con-
ditions in the trades.

Aware of this, the conferences
have been trying to reform
themselves. Emergency - rating
committees consider shippers’
requests for special rates where
the rate is the determinant of
whether a commodity moves or
not. The conference tariff
structure with its thousands of

The traditional closed con-
ference system which has
operated for more than a cen-
tury In trades other than the
U.S. appears to have been legi-
timised both by the immin ent
coming into force of the Unctad
(United Nations Conference on
Trade and Development) Code
of Conduct for liner* con-
ferences. and the Reagan ad-
ministration's support for
establishment of closed con-
ferences in the UJ5. trades.
Nevertheless, increasing mili-
tancy on the part of importers
and exporters and the rapid
growth of a new breed of out-
siders committed to non-
conference operation, threaten
conference domination of the
liner trades.

Closed conferences are group-
ings of lines serving a parti cu-

Big tankers rarely operate at
top speeds in these days , of
depressed tanker markets. But
■the scope for savings on all
types of ships is impressive. Ur
Chao detailed the lessening “in
fuel costs that slower speeds
could bring. Wah Kwong has
put special SPC (self -polishing
coating) paints on its huge car
carrier, European Venture, and
oa its 263,000 dwt Hitachi Ven-
ture, the largest dry bulk/ore
carrier inthe world.

Propeller designs axe also
highly significant in cutting
down fuel consumptioa Large
propellers move mare water at
slower rotational, speeds, giving
more efficiency- Mitsui has
developed an integrated duct
propeller (MIDP), with the duct
fitted in front of the prop for
improved flow. Again, 'Wah
Kwong has fitted these on three
Japanese-built 126,000 dwt cod
carriers. Mr Chao reckoned
that MIDP reduced fuel con-
sumption by 3-7 per cent.

There is no shortage of other
design ploys aimed at curbing
fuel use. Mitsubishi has oome
up with a reaction fin whidi
goes in front of the propeller
to recover part of the energy of
the rotational wake and can
save around 5. per cent of
power. Savings have also been
made hy special hull tterfgng
such as the bulbous bow.

The growing use of com-
puters to link design options
with shipowners’ exact require-
ments and ships’ potential earn-
ing power has. wrought major
changes in how vessels are
planned and built

Burmeister and Wain, the.
Danish yard which works
closely with B and W Diesel
though no longer under the
same ownership, has had a suc-
cessful run with its economy
bulk - carrier range. British
Shipbuilders has a new 45,000

forced into the liner market by rates, many based on disttoo-. dwt economy design for whit*

cairopn In.'il**. lu.tU tlATIC nnnrxr tMrtwv 4 a Sm.' i — ° —

severe overcapacity in the bulk
trades, while a slice of tradi-
tional liner cargoes slipped into
the neobulk category. A new
type of combined bulk and
container operation started in
which if you could pay for the
ships with bulk carriage you

Hons owing more to the days
of sail than containers, are
being simplified.

it hopes for more orders.
Japanese shipyards are also
. p utting heavy emphasis on fud-

Degute the i tougher regulatory . efficiency and newer iforign
and competitive environment, techniques.

the major consortia could have
faced the 1980s with reasonable
confidence. However the over-

could offer out rates on con- capacity threatens to get worse
tainers as icing on the cake, before the recession lifts suf-
ficiently to generate the extra
traffic.

The writer is
Seatrade.

The resalt is that the highly
rationalised liner sector is
nevertheless running 20 per
cent over-capacity.

For-, all. .builders and
designers, though, the main task
is to persuade more, owners to
invest in economy. While ship-
ping markets are poor, “the
choice is., one of spendi ng to
save or of saving by operating
editor of older, already depredated ships,
for a while longer.

Hard decisions

Meanwhile, oil price increases
forced the operators of fast
turbine powered container ships
into some hard decisions to
re-engine with more economic
diesels, or embark on massive
replacement programmes with

Ian Middleton

Andrew Fisher

lar trade which fix common new fuel efficient ships. Cur-

tflriffa dtlri dem rnn 1 i**i Atn maw a.

tariffs and sign contracts with
shippers who are rewarded for
their loyalty with discounts on
conference rates. Other lines
operate as independents or
build up a share of a trade and
then negotiate for conference
membership. Such cartel-like

rency instability meant profits
could be wiped out by exchange
losses as tariffs are mostly
denominated in dollars while
expenses are in a variety of
currencies. Importers and
exporters, themselves hit by
recession, have become increas-

arrangements, have often, ingly militant and their organ-
naturally, been viewed by gov- isations increasingly effective in

winning deferrals or reductions

emments with considerable sus-
picion

However, they have been
allowed to operate largely by
self regulation except in the
U.S. trades where anti-trust
authorities forced a looser and
highly regulated arrangement.
The main reasons are that in
order to get the long-term

in proposed conference rate
increases. Subsidised and other-
wise government -backed lines
have won a growing share of
the traffic.

The developing countries want
a greater participation in the
carriage of their trade, and
though their chosen instrument
commitment necessary - for ** nc tod Diner code.- has yet
strategic and economic come “to force, many have

security, countries have con-
ceded the need for operators to
have a degree of guaranteed
financial stability. At the
same * time the lines compete
with each other on service and
shippers can always have
recourse to independents

anticipated its cargo

provisions by reserving

unilaterally for their national
lines.

■Independents like TFL and
Cast on the North Atlantic,
ABC from Australia to the U.S.
and Europe, Evergreen of

Taiwan on Si

Keep tne conferences on their trade and nrtioro *w«tro

toes.

The rapid advance of con-
tainerisation from the late
1960s onwards, was the .first
new development to put a
strain on conference organisa-
tion. When was the right time

trade and others have presented
a new kind of threat. They are
committed philosophically to
non-conference operation - and
are either backed by more sub-
stantial financial resources th qn
toe host of independents that
have come and. gone before

a H< *£ *5' or -are”offering S

was the considerably increased service features. They seem to
rapital requirement to be met? have in common abeUefthS
The answers led to the growth conferences have become too
of consortia of like-minded unwieldy and bureaucratic for
lines within the conferences, shippers* needs and their own
They poolai their resources operating inclinations. Shippers
often establishing a separate appear to agree. Many of the’
enti^ as in the case conferences have so many mem-
of the UB7s OCL (Overseas Con- hers, -such a wide range of

The hardest working boat in any fleet
And the most versatile.

TRADER

payload capacity; immensely
strong construction; propulsion by single or twin dteaaEdrMng shrouded

propeflers set in tunnels under the stem; heavy duty waterlets or autdrtvfes.

These areonfya few of the features which make the 8-flni TRADER a, :-X.
giutton for work. ,.

bean operate eftecBvety In shaflew or debris laden waters. ‘
Spaed options range from .15 to SO knots.

Maintanance costs arftex ce p to i a lly tow. The welded
atummium hull and superstructure are maintenance
You can takadeDvay of a TRADER in as Dffle as tinea months.
Send for a full specfficafibn sheet now*

WwAHday Marine United
Hamfile, Southampton S03 5NB.

Teh (042 122) 2661

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'~V Jone**^ 1982 ~.;v - ■

WORLD SHIPPING AND SmPBCIIDING V

Peed

An aggressive newcomer, South Korea/is
worrying Japanese and European yards

e ™- wia Cn ’ i n.
as airtry aijjijl
« 5t

w *- ilfo,

"ft inaiSSl 1

ij-siems. ^ ^

SHIPBUILDING STATISTICS
& WORLD FLEET 1971-*!

IOQOi

AtSron dwt

Wbrld Fleet

----- sw-ono t

* now h, a *%

?%S5J

»Ok. a, 3n <f

16 Of Sh;p rJ 0 ^

redundant S* «n

•ss^y*

I***

0e 95 tons £ e r **
>ns wnrh - r 0r

* S405.000°J|S

ressed

ankers ra re i,.

in fiL*
ied tBGker oShS 5
? pe .. for saS*

f snips ifiapSJ!

etaned ih e £5?
tot dS2*

>™S. AVah rl*

®* isS

iKsartf

63,000 iM ^

^ fewest drr2
m me world.' “
slier designs ^
sigafeat j*

uel consul t

ers move more ^
rot at or. 2! .pee*:
efficiency,
ied an inters ,
er 4MmPi.vi4
r. froa: c: the %
?d flow. Asu;
has fired the**,
se-bui!; m £*titoZ.

*

r-eccwd a

v- . pi r cia

'•:• j’ r .orii|9^-

.‘s fe:.Trfi*s«s
jl.t.i ubjas >;•
~ _ rea.vion 2.

1 frcr.t of ire
ver p:r. x -hi *>;
la 1 Iona. Aik* c
roand 5 per 2
Savir.i- h": i«
ay r-pe::-! ii-j: &

; the bulb? - :* :r.
srjv.r.j j« c
to »:r.’- riffisi ■'

itpo'ivr-iTi’ :xj
itld ?'-!.?«■ V^iCZi:

xct l.-i '.'t::;:' :

; in ‘-.vV.- :kl
i arfl bj
leistor .

yard
wttn 3 _sd i'.'I

IDP

m b;.
e J5 r
plcy
e.

’ ;Cv

r.re

tn any

tf ?'-" 7 r "

_ : rlE — ’ ,•'.

ii r ? -

stions^

eS!**

ff-o:* *'

thjii .WORLD ■ s&lpbuiidlng
Vrtoijtistey" basr'lost its: Tooting
7^ ’after .‘the recent'hrief recovery
‘.-.tiffa is Zapping , backwards

agtiin.' ■ .. . -

V-. ^Having ■ suffered;, hefty Jinan-
-^"cL^l losses andifleep cuts 7 in
capacity after the'dil-crlsis . hit
a .- -order, boofcv many yards had
. : .-been hoping -for a steady
i : ; recovery to cpntixrae tfae ■ pro-
- • “gyesa made since 1979.
i~ • -But this r is -not .'to. be. Order
% 1 Irqoks ljegan to weaken late last
year and the first few months of
j 1982 show no signs -of improve-
_ :mept Even , toe . Japanese, -the
-i; world's largest 7 builders^ are
^.•ifeejing the pinch- •

27; 'In western Etunpe, some
=--_con^»anies have taken refuge in
specialisation, others have been
prcqjped up by governments,
5 7 and = some . have, survived by
•"'judicious- pruning •' ' and'
ihorough-going r^organisatinn.

The Japanese and Enxopeans
dominate world shipbu ilding ,
but both have ^ beed made
highly nervous by an aggres-
V sxve new rival-^-Sontlr ■ Korea.
? f-.19ie latter is now the world’s
Jfumnber two - shipbuflder - and
*v;has been expanding while the
~ emphasls elsewhere has been
on eontiraction. ' -Korean yards
3 -tikw 'account. for more than 8
^fper'- cent of. .the international
s reorder book. •

: ' Criticism of the JCdream has
^^heen rife from.both Japan and
■^“Europe. Major Japanese yards
; vc have seen - a number of big
_ . orders go to thdtr Fa^ Eastern
V'7hedgb1x)ur : Where such com-
5f^panies as Hyundai and- Daewoo
fa-have invested -beavfly in new
* z . faaTIties. " During- - - : : 1981,

f Japanese - cbmpiuiies : tendered
I : -for construcBoii of over 40
: v ' large 'Ships in . IS 1 -seporsde
: -r Orders piit out to international
; \ibiddixig. : They did not wdn a
r -" single one. ■ ’ : ‘ - •

f "Since .'I&»^ Is not a member
r ' : _of top- ... Organisation for
Economic Co-operation :and
■ - : DeveJoptnept (OECD) in 'Paris,
other .nations cannot easfiy pot
'r^pressiire on itr thiuugh the
7 regular working parties in - to*’’.
V?, industry. But .they have made
l - . : thesx. views known-

In reply, Korean officials state
'.that-''ihSr_' i ocde9rs too'.' have

rtimmigh»d | Aygn 1fK>Ugb‘ they

have landed some big does in
Jhe-past year or so. ...

... -fdst year, -shout .17m gross
tons of new brd«rs" were' placed
- at world yards, according 1 to
Lloyd's Register. This was
nearly 2m - urns down on toe'
previoas . year, though actual
output 'was sodie ^5m tons
hi^ier. at I65m-
Whfle total order books are
way. below the peak, levels of
\tiie earty -1970s— tbe record was-
X33.4m tons in March 1974—

1972 '73 -74 75 76 77

SOURCE’ THEHATOCftEPOffT

78-79 *80 *81

'World shipbuilding orders
- -(million gross' tons at
end-March)

Japan
S- Korea -
Spain *
Brioil
Poland
UK : ' • -
Yugoslavia.

1L8 (-0^0)*
2-8 (-020)
±2 (-0.09)
IJB <-ft20)
L4 (-f 0.02)

-U. (t- 0.08) ’
-liO (+0^0)

World total

33.7 (r 1-60)

^Source: -LloyiFs Register
■•DecBne ira-prevtonr'gnarter

there had been hopes that toe
pk^-up. from tho^ bottom in 1979
heralded a more cfaeeaiui
future for the industry,

. -Shipping markets are, how-
ever, in. decline. World trade
has eased during toe recession
and past optimistic ordering,
especially of dry cargo' vessels,
means the surplus of merchant
ships will become even-, more
.acute in the next two years.
-Hecognition of this began to
affect the new order pattern in
-the . shipbuilding Industry
around the middle of last year.

' The lowest point reached by
the industry's 1 order book was
just over 25m gross tons in the
fii^ 't^Mrter of 1979. The sub-
sequent revival left it more
than -Him tons higher after the
same period of 1981. By toe
middle of last year, it had- risen
"slightly more to nearly 37J5in
tons.

-- TTie decline set In after that,
^rith the fignre tor March -of-

1 this year down- to 33.7m tons. •
Most -of the 1 major shipbuilding
countries have been affected.
Japan's total order book, still
over a third of the world
figure, has been slipping for
some time, and fell a further
" 840,000 tons over the three
months, to lL8m tons. Korea’s
fell *212,000 tons to 2.8nu '-.

- . The Ministry of Transport in
Tokyo, recently stated that
Japan’s hew shipbuilding orders,
fell by a tenth in the fiscal year
to March 31 to 8.4m gross tons.
The market bad expanded early
in the year, but 'then tailed off

- substantially.' “No signs of re-
covery have been seen to date,”

- it- commented gloomily. Over
the next few years, government
estimates ' show that Japanese
yards - will still be working
' below capacity.

The country’s official-, anti-re-
cession cartel, aimed at limiting
output in line with depressed
world demand, ended in April.
But the Government does not
want yards to start further
costly expansion races by
going for volume at toe expense
of earnings. Despite - sharp
cuts in Japanese yard capacity, .
many European - shipbuildi n g
companies feel these, have not
been deep enou^ esimcrally in
view of Japan’s .previous expan- .
sion before . toe oil crisis hit-
the big tanker market. 1 -.-'

For their, "part;.. Japanese
Government and. .‘companies
argue that toeir reductions
have been sizeable both in
manpower and- in yard facilities.
Cuts of . around 35 per -cent
were made in capacity and the
number of building berths
-went down from 138 . to 88.
Some yards were filled in and
others switched to other .
activities' entirely such as ship-'
.repair,- engineering assembly,
or container manufacturing. 7
■ - Japan stin ^^ - some- highly

modem yards, . however. Total
output in the Japanese ship-
building industry is expected
to be unchanged- this fiscal year
to end-March 1983 at some 5m
compensated gross 'registered
tons. For the following two
years, the Ministry, of Trans-
port expects' it to slip to around
4J5m egrt, « measurement
which takes more account of
the skill and time involved in
building different ships.

By the 1985- fiscal year, out-
put should be moving uji again
to present- levels. Some
Japanese companies feel the
Ministry's estimates, intended
as a reference point rather than
a firm guideline, are too opti-
mistic.

Faced with a generally bleak
outtook for the Industry ship-
building companies have had to
think hard about how they can
keep going. Some, like
Finland’s Wartsila, have opted
tor specialisation, aided by
major Soviet contracts. Wartsila
has - built up a healthy order
book of ice-breaking and ice-
strengthened ships and has also
established a profitable niche
in the cruise ship- market

Fael efficiency

Nearly all major worldwide
yards are doing their best to
meet . shipowners’; growing
desire "for more "fuel-efficient
ships. Bunnelster and Wain of
Denmark is- well into a success-
ful run odT .-economy bulk
carriers, while - British Ship-
builders has also developed
new designs.

Shipbuilding, as even a carnal
glance at toe order figures
shows, is far from being toe
growth industry it once was.
The ; trend now is to- find a
promising area of- the market
and stick with it firmly.

Andrew Fisher

LL SHOW YOU

ASAFE PASSAGE

THROUGH CRIPPtliG

INDUSTRIAL DISPUTES

Industrial disputes aiuund iiie world cosfc ship-
owners : aad -charterers hundreds of millions of

pounds a yean
Butthei

utthere is a way around this serious problem.
The Strike CM).

The concept of nxninal strike insurance was bRynghttotiieLondon.
market 25 years ago by John Laing. Tbday, toe dub, winch is
miynagBfl'lyJ nbnT ^g Managftynent(B CTmild«)T Jri.i«tofllar geat
nmavnafim-t nf ifakmd fr> tog wprT t fj Wfto mnr a than &5nriIKnntanft
under its coven

As a member of this mutual venture, you can

The Strike CluhFor a safepassage
torou^hL troubled waters.

■ 1 nAUhM*. 4JL4JL UilA/U) UAAVVUIJ Vi JhUVUV WIAJ) M

labour or crew- at an entrance cost; an average, of.
about 1% of a vesseFsaunual running costs.

the coupon.

You will receive & copy of the StidfeeQuifs newly-

published 1981-82 annual report; which contains
full details of the Club audits benefits.

It also features aniuddeut-by-inrideiit analysis
of disputes that took place over the past 12 months .
- horrific reading unless you are a member of
IheCLub.

Tb M.Y P&rlrinBOn, John Laing (Management)
limited, 317 Fenchncdt Street, London
EC3M53L. -

Hease sendmeaapyofThe StrikB OnbAnTnifll

-Rpjwwt.rfaH-hratiftjmhHBhwl wt.tfiw gnit nf June.

THE

STRIKE

CLUB

1

I

w Addrflfn. . .

j

1 1

1 I

m m ■■ Jl

- - *

li* ' A ^60my 1983 threatens number Two m the world league

..vc:

_ . i . ..

: Vs

iil

: SOUTH -KOREAN shipyards, seven Mg: roU-on/roltaff - con :
‘--Bee others around toe -world, tainer ships. This woold com-
- are being Irit "by toe fall-off in prise a- firm 3200m order now-
; -new world shipbuilding orders, and four to be bndt later.

-•Up to to® end pf April, orders Daewoo
«nr- H w - ifl totes totaliinfi ' financial cooKmwns of its recent

gta“- s f,

had been 14 container shops .valued at-

year, according to .

toe -Ministry of Commerce and" tripfe toe orfeab^ - Dae-
fndnstry. -This Was well ■ down^ . woos Okptf— sh ipyar d, m-
tolSyear, wh^n $769m .Vtorto augmafed last aitonn. -which

of ordeTS for 501,000'.
^■Jftered toe urd.er books

4mEre»fi§F .hasi' 8488.9m. to' cots*,
tracts fat 17 dffpd.' ; - -.- .

HcaWiy orders

‘"Andrew S ^

prv

a _ r only

_ toe .first quarter.

“ t)f ' Koreans ’ four ' big. yards, '

^ITHjindal H^avy ladostrias .has '. The total -order boot f«r toe.
: '7 rained new orders for . four industry is stai healthy, but it
toips : ' totalling: t48.4m, : while will ru-n down fids year A making
^'Samsung Shipbuilding and Enr a^gioomy 1983 after toe first
gtaeeritig has received two at quarter miless the stdsipiag.and.
$69m. . . shipbuilding . markets inqaove.

-- - i’This ieaves-beto Daewoo Ship- Mtaistry of commerce and
— building and- Heavy Machinery- -industry figures “place toe order
,-'and”Korea Shipbuilding ' and 'for' Korea's 11' ditoyards^

’ Engineering with -no firm orders - at $32bn for- -134 sidps at 2.4m
so' Tar' this year. Seven smaller gross tons. Hyundai has had two
yards have had new orders fo^-.-recent worries, .on .itS-' order.
13 vessels. books, with delayed delivery
Bnt there are two big orders reque sted. But both orders have
waiting in the - wings that hsrtrft' stayed on thfe- "books.
not been reflected in new <ader • - •. Government plans .for expan-
fieares, since final - contract Sion, of total shipbuilding capa-.
approval has; stiff to be^given. rity from 4m- gras tons to 6nr
TTvundai is ■ expecting a' firm . to the Fifth Five-Year Economic

55 S^‘SE»«--Bfae'*-FW>*CU»«g

§a ? i a -European gronping, for ; shelved, -according to industry

officials toe to - weak . market
c'ondStioiis and poor prospects.

Offshore structures continue
to -take up some slack in' ship-
yard-capacity, but' demand for
these has also, eased with toe
oil glut' knd.: more stable- oil
prices reducing toe need - for
new drilling Operations.

. Daewood has U-total of 8585m
in contracts if or offshore struc-
tures and 'Hytmdai' has 3200m.
Both are .'alsb moving into pro-
duction of industrial plant but
the competition is’ stiff and -well
established from industrialised

countries.

_ Daewoo has a- $150m - salt
■water .; treatment plant ■' for
Alaska, under, contract, in addl-
■tion_ to. a . 5120m. polyethylene
plant for . AJbJuhaii* "Saudi
Arabia.

Hyundai- Is qptouKtic about
landing' 'tore® large .'turnkey
;pr0jects --5ooa‘-’ in ■ cenjunction-
■ with a fwelgit engineering- firm.'
Company - officials ' explain- that
although' Hyundai V reputation
is - better now for complicated,
plant fadDties,‘toe market 'tenot
-good." •' • - •■ • -. •

Koream shtobtolders -are wait-
ing for ah uptqm that- they hope
will ; occur : bef ore -the yards ex :
perience serious cutbacks.-

Ann Charters

Operators fecea sharp lisein Canbb^n rapadtyby!985

Optimism in cruise market

[ EWER SINCE airitoes came.to
. dominate major . routes, ditoS;
have taken a back seat on. tiw

: passenger toaritet f-

■ The .days, of elegant . Hn®
1 sailing' sev^al thousand- utiles
; otb-vS(*eduled ^jounOT. -tare-
- gone. Nowadays, toe bjg ships
aie analiily to luxuiy^craises,
t though some are toned- a t,

: bclS pockets. Mostpe^e, if
• tS ' have ’Been on sc passenger

'Sfeip.-will have-token short-tnps
— am«. JEe EagHto-’CbaimM' <tf-
: other manageable stretches of.

water to jeadi a foreigu bouday
; destination: "T '

•One- look at a tap esntise com*

J piny’s .brocbiire .With.its- gl^sy .-
. pictures .of . golden . bteeb®,

. spying palms, succulent food,,
affd syffiuitic accommodatiop.
wffl persuatle’tiie' average- boli-
• daymaker that aH this is way
above their income bracket A
quick look at. toe fare' list tv®

; confirm this. Bto several. c«br
panies are confident enough^of
’ future growth, especially in toe
V domina nt ~ -UiSr- maricBtr to “be -
investing beavfly in ncw.shlps-
Ferties, too, do not come

and. can- -cost.- some

540m. -Some are virtually minir
cruise ships - themsedves,' espe*
7 eiaffy . around Scandinavia. A
number .of 'the - world’s biggest
ferries, lifceto® operate

, from. Finland across toe* Baltic
to. Nprto Germany orSweden.

But it is CTudse- ships vtoich
retoy. ■ ran : away 'with- shy>
oWriertf j toit Ranks’ money. It
cojts wefi. over $100m to build
png jttL.these .-today. 1 . Britain’s
P"& TO' “Cruises, after long
deltoeration, has derided to pay
out sOane $150m for a vessel to
be' butitby Wartsila ofTinland.

• ASready' this year, bite brand
new crtiiseTsMp, the Tropicaie,
•toas toetr delivered to Carnival
: Cruises : for ^he Ameri<»E
market Carnival wants, to build
more - ships, .each -carrying
around 1,400 passengers.
-Home Mines . now . has toe
Atlantic... in .service, while
7 Scandinavian World Cruises,
part of BEDS of Denmark, wiff
introdnK'itS'Slftf^
navia into toe Caribbean in
July. As -well as 1,600 passed

gers, this.sMp wSJ have capacity
for .400: cars* _ •

.Norwegian American' Cruises,
which has two : luxury vessels on
' various wbrid cruise routes', is
pondering -whether to build a
new ?hip. P & O, which had : two'
passenger ; ships taken for. Falk-
lands- service, also has options
to build farther' vessels in Fln-
- land; 1 this -summer,' it brought
up toe- .Sea Princess from
Aistralia, gave it a £2m refit in
Southampton and sent it off on
a Meditenanesm . cruise. West'
Germany’s H^wg-Uoyd began,
cruises with its new Europa
■'ship last winter., .

■ Investment- and. -optimism is
not aH, .-however. . The U^-
recesrion. has made . the' cruise
market. J,ess than financially
buoyant, : some- ■ hSn

peopte 'wffl go endsing there
•this, year: rBased on announced
intentions' of lines serving 'the
Caribbean Incapacity will be
nearly 50 ^pw'Centup'bn 198L
This coulfimakfr life diffictJtfor
cruise operators

AJF.

• • «?..»% .' ‘ . s . . . ■

PARTNERS DILIGENT AND PROHCIENT

Ready to ensure your satisfaction

Success of a company and satisfac-
tidn of.hs customeis are fargefy de-
pendent on one factor: the attitude
of the people wire work
panyi

At Hviindai, we adhere to a ph3<>
sophy of making success an ;
attainable goal. . '

Hyuncfai, seeks out the most pro-
ficient person foreach position.from-
office workers to Engineers, to ensu- .
re that decisions areinade on a pro-
: tesiorial basis,

VVfe.areworidngtDgether §

the reputation of excellence for
which our company, Hyundai, has
become famous. Excellence in fields
such as construction, heavy indus-
try; machinery, automobiles and
marine transportation.

The 150,000 diligent people of
Hyundai take pride in what they do
and in the organization to which
they belong.

When you deal with Hyundai you
deal with us. We are looking forward
to working with you.

BUSINESS LINES:

Engineering & Construction,

Construction Materiab.ShipbuiJding & Repair,
Shipping, Automobiles, Electrical Equipment,
Roffing Stock, Iron & Steel, Industrial
Equipment, Containers, Metal Pipes,Int1 Trade.

▲HYUNDAI

CPO Box: 8943 Seouf, Korea.
Telex: HDCORP K23175/7
HYUNDAI K231 11/5

ASIA : TOKYO: 03-211-0851/4, SINGAPORE: 982460, JAKARTA, MANILA, BANGKOK, DACCA, KUALA LUMPUR. HONG KONG, RANGOON, SYDNEY, TAIWAN AMERICA : NEW YORK:
212-685-1210. NEW JERSEY, LOS ANGELES, HOUSTON, MIAMI, SEATTLE,' TORONTO. QUITO, SANTIAGO, BUENOS AIRES, BOGOTA., MEXICO CITY, EUROPE & AFRICA : LONDON:
01-741-1531 , DUsSELDQRF, AMSTERDAM, LAGOS, NAIROBI. PARIS, FRANKFURT, OSLO,. MILANO. BENGHAZI. MIDDLE EAST : RIYADH: 478-7231. KUWAIT, QATAR. ABU-DHA5I,
DAMMAM, AL-KHQ5AR. JEDDAH, BAGHDAD, BAHRAIN, TRIPOLI

3S

WE PROVIDE A LOT MORI

CAPABILITY

• FLOATING DOCK: 190 mx32m FOR
VESSELS UP TO 35,000 DWT.

• SfflPLIFT: 2000 TONS CAPACITY
PLATFORM, DIMENSIONS 90.6 m x
23 m.

• TRANSFER YARD, 7 NEW BUILDING
AND REPAIR BERTHS.

• REPAIR JETTIES: 230 m, 135 m, 95 m
AND 90 m.

•FLOATING WORKSHOP, FULLY
EQUIPPED WITH DIVING SERVICES,
(BRUSHKART, VIDEO).

• FULLY EQUIPPED WORKSHOPS AND
SERVICE FACILITIES.

•GALVANISING PLANT.

SERVICE

\ SHIP AND ENGINE REPAIRS /
CONVERSIONS.

► NAVAL AND NEW CONSTRUCTION.

► REFITS AND OVERHAULS-ENGENE
AND HULL.

► SPECIALISED VESSEL, DOCKING AND
REPAIRS.

► COMPUTER CONTROL OF SPARES
AND STORES.

i IG / COW RETROFITS.

► ELECTRICAL REPAIRS.

OFFSHORE SQUADS FOR REPAIRS
UNDERWAY.

> NDT LABS AND CERTIFICATION.

PLUS

•UNDERWATER VIDEO SURVEYS.
•HULL CLEANING AND UNDERWATER
REPAIRS. ..

• WET DOCKING FULL SERVICE.

TO KEEP YOUR SHIP IN ACTION

For further information please contact:

Kuwait: Shipbuilding and Repairy&rdCo.fSAK)

PO Box: 21 998 Salat, Kuwait. Cable: DOCKYARD
Tel: 835488 / 830308.

Telex: 23745 M15HREF KT, 22438 KSBRYD KT
Authorised and paid up capital KD 15 MMon.

KUWAIT SHfPBUBJMNG AREHURlOUtD CO-lSAK)

Nedlloyd

Worldwide Transport

At sea, on land and in the air, Nedlloyd Is on the move:
Providing a major worldwide transport capability
fundamental to the economics and well-being of developed
and developing countries alike.

' Providing a broad range of supporting specialised port
facilities and forwarding know-how Internationally, to
complete the link in the transport chain.

Today, we are also active in the important energy field,
with substantial offshore operations.

Simply to be one of the largest and best
equipped companies in the business Is not
enough. It takes over 19,000 Nedlloyd
personnel all around the world using
their experience, expertise and
professionalism to make the service
really work.

However large we become,
we never forget that Nedlloyd is
still about people serving people.

Nedlloyd Group

Royal NedUoyd Group N.V4

21 Houtlaan, P.O. Sox 487, 3000 AL Rotterdam,

Phone(IO) 17791 1. Telex 27087

Financial Tiracs Xiiursday June 3 1982

WORLD SHIPPING AND SHIPBUILDING VI

Tanker owners scrapping more vessels .

FOR SALE: one big taster of
200,000 deadweight tons or
more powered . by steam
turbine and around 10 years
Old. Price: a few million
dollars, a fraction of the orig-
inal cost.

. Likely t&ter: an Aslan ship-
breaking: yard, of shipowner
with an eye for a bargain, a
taste for risk, and an abund-
ance of optimism. ~

Multiply the above by
enough ships to total welt over
100m dwt and you have the
size of the problem. - The
tanker industry is in a parlous
state and has been for some
time. And With demand for
oil lacking buoyancy, taster
owners are scrapping more
ships and ordering as little .
as possible Much tonnage
is simply laid up.

Ten years ago, before the
oil crisis, large tankers were

“ 1982 will be a watershed year,” said Mr Ronald Rian,
head of BP Tankers; describing the stale tanker market
Exxon, of the U.S., has already five .big tankers for
scrap this year

an the . rage. Shipyards in
japan and Europe scrambled
to put in huge docks to bnild
VLCCs and ULCCs (very large
and ultra large crude car-
riers). -

At that time, the world
tanker order book was nearly
96m dwt Two years later, at
the start of 1974 it had soared
to almost 200m dwt touching
231m during the year.

Since then, It has been
downhill. Yards have had to
cut back drastically, with dire
financial consequences for
many. The bottom was

reached in 1979 when the
order-book began- the year at
under 10m dwt It climbed
back a bit after that hut had
slipped again to Just over 12m
dwt this January,

The volume of tankers sold
for scrap has speeded up. with
10m dwt headed for the dem-
olition yards in the first four
months of 1982. The figure
for all of 1981 was 13.5m dwt
' Even so, it will still take
a few years for the surplus
to be mopped up. Big oil
companies have been selling
as many VLCCs as they can.

Nor are.matiers.mhch more
cheerful in gas shipping.
About half the available lique-
fied natural gas (1NG) ship-
ping capacity was Idle at the
start of the year, Lloyd's
Shipping Economist noted.

Cautioning against loo nmeft
gloom, though, it- added that
nearfy aO-the ships* in opera-
tion seemed sure of long-term
employment, as did those
under construction;

Bedevilling the ING market
have been wrangles over price
between customers and sup-
pliers such as Algeria aid
Libya. But potential LNG
demand is huge, notably from.
Japan and South Korea which
has also begun to import
liquefied petroleum gas .(LPGJ
where shipping experience
has been less fraught

ANDREW HSHER

WORLD BULK FLEET

Million dwt

1972 74 76 78 ’80 .'.’82

SOURCE- FEARNLEYS, OSLO 0982-88 ESTIMATES) •

Anxious time for
bulk carriers

Financiers take
a wary view

SHIPPING FINANCIERS are
drawing in their horns. Prices
for second-hand tonnage have
fallen sharply this year against
a background of looming crisis
within the Industry as exefess
capacity and fierce competition
pare trading margins on ship
operating. to the bone.

The banks' have recently
came to the rescue of the Cana-
dian-controlled Cast group, and
the fear among bankers is that
before long, more shipping com-
panies will be forced to seek
financial salvation.

- This message has not been
lost on the market place where
some second-hand ship values
have halved in the past 12
months. Even prime value
vessels such as newly built
Panamas bulk carriers of 60,000
tons have come down in price
this year, tumbling . from
around $2 5m to little .more than
J16ra. Along with freight rates,
ship asset values are now close
to cyclical lows and as a result
there is plenty of uncertainty
among the lending institutions.

Since the collapse of the
tanker market in 1974 after the
first oil crisis, bankers have eyed
the world shipping Industry with-
misgiving. It is burdened with
a shaky capital structure, vola-
tile costs and weak demand
But it is a big b usi n ess and
therefore hard to ignore. World
orders for new tonnage prob-
ably total around $30bn and
until this year the market in
second-hand ships was worth
around $4bn annually.

Forced out

There are about 20 major
banks in - London with active
maritime divisions, and the
thrust of their operations is
directed towards the second
hand market A s the world’s
shipyards have battled to stay
in business on the back of state
subsidised credit, private capi-
tal has been largely forced out
of the primary ship markets.
The banks have a sizeable busi-
ness in bank guarantees on new
orders, but their direct lending
links are modest -
The proportion of world ton-
nage controlled from traditional
sbipoing markets is slowly being
eroded by cost pressures. 'Hie
North European fleets are being
svst critically dismantled, and
bankers are having to make
major risk adjustments. No
longer can the lender of mari-
time finance take for granted
recognisable corporate struc-
tures and published company
accounts.

To traditional Greek secrecy
has been added the rapid
growth of new areas of ship
ownership, like Hong Kong
where companies Eke G. Y.
Tung and Carrian Investments
have been expanding rapidly.

Even when market conditions
are favourable, it is rarely easy
to . match the differing capital
requirements of shipowner and
banker. At its most basic a
banker’s requirement is to get
his mnoey back at the stipulated
rate of return. The chang es in
the structure of the world ship-
ping Industry in recent years
have demonstrated forcibly that
no all-purpose financing formula
is available. The asset finawrMig
approach has come under pres-
sure from the recent wide fluc-
tuations in ship values.

Ail this has led to a greater
fragmentation of freight mar-
kets, and since shipowners are
now unable to predict require-
ments much more . than 12
months ahead, the availability
of long-term charters has been
significantly reduced. In short,
the shipping industry has had
to narrow its -trading horizons.
Understandably, the capital

appeal of shipping has been
moving down to new lows, and
the banking community bas
tightened up on pricing.

Yet from the point of view
of relative asset values, the
present is probably a good time
for investment in selected ton-
nage. Adjusting for inflation,
the secondhand market has
rarely offered better value, say.
most bankers. But they make
the point that a certain amount
of “ stockholding " needs to be
built into the potential pur-
chaser’s price.

Unless the market can pro-
duce a recovery in freight rates
within the next 12 months,
potential buyers are going to
have to carry thedr acquisitions
through the present lean period.
For those owners who can
absorb the cost of borrowings
and potential operating losses,
the longer term returns Can
hold out considerable promise.
What amounts to distress sell-
ing by some owners, can prove
to be bargain basement buying
for others.

Jeffrey Brown

HOW WILL bulk carrier opera-
tors survive the next year or
so? Freight rates remain stub-
bornly low and numerous ships
ordered in more encouraging
times are being delivered. So
the market is likely to remain
depressed for some time and
owners’ financial problems will
become increasingly acute.

“There must be some cata-
clysmic bankruptcies ahead,”
said a shipbroker on London's
Baltic Exchange sombrely.

It was the collapse in diy
cargo rates which nearly tipped
the Cast shipping operation
headed by Mr Frank Narby over
the brink this year. His Cana-
dian-controlled company, which
-combines bulk and container
shipping, is surviving with help
from banks add shareholders.

But, other companies could
safl into deeper trouble and be
unable to shake off their debts.

Prospects for a rate upturn
■seem limited — “ There are not
likely to be many who dare hope
for any further improvement in
tile near future,” said P. F.
Basso e, a Norwegian shipbrok-
ing company. Pessimistic com-
ments like this- have become
common. Generally, the industry
sees no chance of recovery until
weffl into 1983 and possibly as
late as 1984.

Rapid nse

The rot started taset in early
last summer. One cause was the
steady rise in the size of the
fleet as new orders were com-
' pieted and more combined car-
riers, also able to cany oil, were
switched to dry cargoes. An-
other was the ending of the vast
congestion on the UJ3. Ejst ,
Coast at Hampton Roads. -

Up to the end of March last
year, the operating dry bulk
fleet had gone up by some 6 per
cent, and this rapid* rise was
followed by release of some
12m dwt, or 7 per cent of the
fleet, as the Hampton Roads'
congestion ended.

With this boost in transport
capacity, said Oslo shipbrokeis
R. S. Flatou, “ a fail in rates
was unavoidable-! ”

The bulk fleet stood at jiist
over 154m dwt at the start of
this year, a rise of some 9 pec
cent over' the - previ ou s i2
months. Another 8 per cent rise
is foreseen this year.

“The future looks bleak in- .
deed,”- said Platbu recently. For
the 60-80,000 dwt Panamas cate-
gory— designed to- pass through
the Panama Canal— a rise of as
much as 14 per cent is on the
cards.

Growing needs

With the world economy in
its present state, shipping needs
are unlikely to expand by .any-
thing like enough to matrix
capacity. ... '■

In March, rates showed a use-
ful improvement, but this was
due mainly to Soviet grain ship
chartering across the' Atlantic.
Grain business alone, however,
Mill not be enough to support
the market With the steel
industry In bad shape, iron ore
business is slack. Nor Is cod
trade booming as early as many
owners hoped.

It was coal prospects which
persuaded many owners fe
order new tonnage in the past
couple of- years before freight
rates began tumbling. - }

What will happen to all the
new vessels? £

Fearhleys. another Oslo ship-
broker, reckons that the new
bulk carrier order book was
nearly 32m dwt more than 600
ships, at the start of the year.
By 1985, it estimates the bulk
fleet will have risen to nearly
180m dwt

The shipping industry is fer-
vently hoping that rates will
pick 19 soon. But there arte
more and more calls for
deliveries to be postponed.

Andrew Fisher

J You can be sure afl will gb
® better all the way when
* : your shipments go to the
Far East and Japan with '
Mitsui O.S.K. Lines and its ..
Asian regional network.
Almost a whole century of :
dedication and experience .
in world shipping goes
— J with them..

A modem, diversified fleet for cargoes of all kinds. Including '
high-speed full containenships on one of the world's largest service
networks. The U.K. and Europe linked with the Far East and
Japan by MOL's "alligator" container service And combined With
the regional feeder service routes covering major Asian ports airtqg
the Straits, Hong Kong. Japan and others. Fully linking markets
for your exports and imports via this vital
world trade route. .

Computerized operations. Satellite com-
munications. Highly efficient container
terminals. Make sure all goes well. Go. MOL. •

Mitsui GSJL Lilies

HuC Office: Tokyo, Japan

H2J22 1 MSS T Preniwfon- H oum. 31-35 Fenchurch Street.

London EC3M 3 HP. Telephone: 01-283 7061/8

U.K. & EIRE — General-Agents: Lambert. Brothers smp AjMrafrw ) <H
I9y207 High Road, Word. Essex. Telephone: 01-553 3311 - •

$

3r!‘-June *>

Slxiahd^' ^ Thursday June 3 1982 ; .

CompaBies aod Markets LONDON STOCK EXCHANGE

RECENT ISSUES

ss ei s Investment

atacitj.®

«f the? 4 V*
tag Eenn ft Jear ,

Honing

'"'Msnfe'tj

Fttent,

S 2 !“y*.

iers

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♦. i: -j-. rs-« £

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wt.

> so-:r_ 3u: is
and

C5 ro : ; ;''5:^3s«

Andrew Fe

irk.

ment initiative blunted by Falkland possibilities
occasionally harder but equities shade easier

EQUITIES

inua a ° fee 1982

prlca

p jsdJcQ

<a * Htgh low

j SS£*S

«d Petroled £

-■srsjs

nef 0r

; Account Dealing Dates
■Option ■

■ * first Dec Lara- Last Account
Dealings tions Dealings Day
May 17 June. 3 June 4 June 14
June. 7 June 17 June 18 Jane®
June 21 July 1 July 2 July 12

• '•'Nott time ” dealing miy talcs
p/sc* from fl wn tarn business dpys
earlier.

Values in the two main 'invest-'
ment - sectors .of .London stock
markets narely. strayed from
overnight dosing levels yester-
day.. ^Trading .conditions .-were,
extremely slow with potential
investors reluctant to commit
funds because of possible major
developments in the battle to
repossess- the Falkland^: Y&ster-
day’s. Derby was -also an ^invest-
ment distraction.

British Funds ran out of
steam. after Tuesdays draw of
strength, sentiment tending to be
dampened by lie overnight rise
in ILS. short-term interest rates.
The underlying firmness in
sterling, however, lent support .
to the market — 1 quotations
fluctuated within very narrow,
limits tb rough out and Showed
little alteration at the close of
business. The Government Secu-
rities index hardened 0.02 to
69.76, malting an uninterrupted
rise off 1.59 over the last seven
trading days.

' Leading, shares trended easier
from the outset, although -trade
In many cases .was barely suffl-
. cient to test prices.- The falls,
ranging to a -few pence or so,
"were often reduced and the FT
■ 30-share index,.' 3 points off at
noon, closed only 2J down on
‘balance at 585.1; AHied-Lyons,

2 up at lOOp, responded to pre-
liminary figures above market

expectations and provided one
of the few bright spots among
lo/ex constituents. British
Petroleum held steady, at S16p,
awaiting today’s announcement
of first-quarter figures..

Interest In secondary issues
was largely-, confined ‘ to com-
panies reporting trading state-
ments. These sometimes pro-
duced -the odd feature, while
occasional bouts of speculative
enthusiasm also lent some colour
to an otherwise drab trading
session. '

Antofagasta Hallway responded
to an investment recommenda-
tion with a rise of 5 points to
£84. :

Edinburgh General Insurance
Services provided an isolated
doll spot in Insurances, being
marked down 3 to a 1982 Iwo of
Bp following - disappointing
annual profits and omission of

the final dividend.'

Among recently Issued
equities. Continental Microwave
met revived demand and, in a
iftin market, put on 18 to a peak;
of 423p. a Huddle, Tuesday's
newcomer to the Unlisted Secu-
rities Market, held at 164p.

- AlUed-Lyons pleased the
market by announcing pre-
liminary profits some £8m above
.expectations and touched a
three-year peak erf IMp before
settling with a net gain off 2 at
100p. Other Breweries passed a
fairly quiet session — the latest
beer production figures having
no apparent effect on sentiment

— a-nH a slightly weaker trend
was evident after the “ House "
close. Bass, up to 249p eariier,
ended only a penny up on
balance " at 247p; . the interim

results are scheduled for next
Tuesday.

Buildings maintained a
undertone with most holding
dose to overnight levels. Of ihe
few ‘ noteworthy movements,
Barratt Developments firmed 3
to a 1962 peak of 301p, while
Falrdough Construction added a
like amount to dose at a year's
high of 169p. Robert ML Douglas
improved a couple of pence to
77 p, as did John Mowlem, to
211p. By contrast, recent high-
flyer Tilbury Group met wiJh
further, profit-taking and died
another 7 to 488p.

Readicut profits

FINANCIAL TIMES STOCK INDICES

June June May
2 l SB

May May yur
SB. afl ’ ago

Government Sees _.

FlXed Interest.

‘ Industrial Ofd

bold Mine*....;....-. ;

Ord. Dhr. Yield..

Earnings, Yld.Z(fufl)
P/E Ratio (net)

Total bargains

Equity turnover £m.
Equity bargains

68.76 60.74 S9.2G 69JJJ
70.00 70.06 69.70 BS.6E

685.1 587J 5873 6S4J

220.01 22 9 A 254.7 230 2

S^B 5J7] 630 -8.40

1X36 1133 11.18 11.14
10.79 10.es 10.64 1032
14,610 15,760| 15386 14,004
— 111:74. 14237 10030

- ___ 12,190 11,776^10,431

6836 68.80
6933 6933
6803 5803
233.7 2313
638 530

11.15 ; 107
1034 1031

13^60 14354
9630 124.40

H,l»l_12360

10 *n 5843. 11 am S8S.3. Noon 9843. 1 pm 585.3.

2 pm S8E3. 3 pm 5883.

Basis 100 Govt. Sees. 16/10/28. Fixed Int. 1328. Industrial Ord.
1/7/S. Gold Mms 12/9/B8. S£ Activity ^«|74. t Corrected.

Latest Indax 01*246 8028.

HIGHS AND LOWS S.E. ACTIVITY

' . -■

1 ■ * - •

1080 •

Since Com pi b*fn

High |

tow;

: -High f.Low-

Govt Sees-.

! 69.76
(2jB)

6L89
(i/D .

127.4 1 49.18 '
j (8/1ZM) ! (W/7S)

Fixed Int...

70.06

(1/8)

62.79

(7/.l»

150.4 1 50.55:
(2S/U/47V (5/1/76)

Ind. Ord...i.

-690.9

darn

618.1

(5/7)

697.3 1 49.4 :
(50/4/81) (20/8/40)

Gold Mines .

302 J)

209.2

568.9 • 45/5
(22/9/80) (28/70/7D

i I

(5/7)

(S/S)

-Dally -
Silt Edged
Bargains...

Bargains... 70.0
Value 2253

SHt-EdgodM
Bargains... 166.4

Flsons rose 5* to 835p; thecom-
■-Pany has completed the sale of
its agricultural fertiliser dl vision
to. Norsk Hydro. Business in, ICI
remained thin, but the close, was
a couple of pence harder at Sl&p.
Coalite, standing 4 higher await-
ing the preliminary results,,
reverted to 116p on the
announcement before settling a
net penny dearer at 117p. Hick-
son and Welch added 3 to 260p
awaiting today’s, interim : resufts.
Among other Chemicals, Inter-
national Paint met with selling
and shed 7 to 223p, but R. H.
Morley, dealt in the Unlisted
Securities Market, put on 2 to

20p.

In the absence of any fresh
investment incentive, the Store
majors continued to hover
around overnight levels. British
Home recovered from an early
l&lp to dose only a penny lower
on balance at 163p, while House
of Fraser ended unchanged at
154p, after 152p. Readicut Inter-
national advanced a couple of
pence to 20}p following the
return to profits, while Sonic
Sound, an. exceptionally weak
market' of late on rumours of
trading difficulties, - steadied
ahead of the interim figures ex-
pected 'Thursday week and
dosed at 72p.~ ^Empire Stores,
recently the subject of an
agreed bid from Great- Universal
which subsequently lapsed
following a Monopolies Commis-
sion referral,' eased a couple of
pence to 96p following the chair-
man’s statement at the annual
meeting. Grattan shed a similar
amount to 106p, but Freemans
hardened to 124p. Heelamat, 74p,

and Bombers, 24p, gave up 3
■ apiece.

Continuing rumours of a
pending rights Issue unsettled
Thorn EMI which lost 5 more to
a 1982 low of 410p. Other Elec-
trical leaders were undecided
wdth Plessey dosing a further 3
Off at 450p but GEC, at 944p,
retrieving 4 off the previous
day's fall of 10. Kaeal softened
a couple off pence to 433p, after
428p, and BICC eased 4 to 348p.
Elsewhere, EnroUienn, 400p,
and Unltech, 2S5p, declined 5 and
10 respectively. Small selling and
lack of support prompted a loss
of 15 to 45p in Piezo Products
and a fail of 3 to Sp in Hemo-
MneticSw

The Engineering sector pro-
vided two notable dull features.
Lake and ElUot'feU 6 to 44p,
after 42p, on extreme disappoint-
ment with the £0.44m interim
deficit, while Noble and Land
declined 5 to 13p following news
that the bid discussions had
been aborted. Haden dipped 7
to 2Q3p and Westland cheapened
5 to 123p, while Laird softened
2 to lllp as did Christy Bros, to
30p. Telfos, on the other hand,
hardened a penny to 25p in
response to the profits recovery
and Ash and Lacy revived with
a gain of 5 to 330p. The leaders
drifted -lower for want of sup-
port Hawker gave up 2 at 340p
as did TI. at 142p, and John
Brown, at 58p.

De La Rue dull

Foods encountered a wmaii
twoway business which left
leading issues narrowly mixed.
Cadbury Schweppes lost the
turn to lOlp, but Rowntree
Markinto^i improved 2 to 172p.
Tate and Lyle held at 178p and
British Sugar stayed at 475p;
news that world sugar prices had
fallen to their lowest levels for
2i years made no apparent
impact After Tuesday’s Press-
inspired gain of 4, Associated
British Foods shed a couple cf
pence to 136p, but Hazlewoods
added 2 more at 242p in
response to preliminary results.
Among Retailers, Teseo
cheapened a penny to 56p and
Kwik Save 2 to 242p, but Fitch
Lovell firmed the latter amount
to 78p. Bernard Matthews lacked
support and in a thin market
lost 8 to 97p.

Actively traded on Tuesday ex
the rights issue. Grand Metro-
politan touched 219p before set-
tling a penny cheaper on balance
at 217p; the new nil-paid shares'"
held at 45p premium.

Standing easier at 570p
immediatoly in front of the
results, De La Roe plummeted to
a 1982 tow of 525p on news of the
33 per cent contraction to annual
earnings before dosing 40 down
on balance at 540p. Elsewhere in
miscellaneous industrials, profit-
taking an the absence of the
much-rumoured bed prompted a
fail of 10 to 24Sp in Johnson
Group Cleaners, while Gomme,
also a firm counter of late on
bid suggestions, cheapened 2 to
3Qp. Sothebys came on offer st
307p, down 8, ami Amalgamated
Metal were also friendless at
410p, down 20. Despite the first-
half profits setback. Marley
closed only the turn cheaper at'
43p. Jardine Math e^ on gave up

10 to 170p on far-eastern
influences. Alfred DnnhUk-on the
other hand, rallied from an
earlier level of 265p'to finish a
net 7 higher at 275p in response
to the good results. Hanson
Trust ended 4 to the good at 165p
after comment on <2ie Interim
figures, while acquisition details
helped United Parcels improve 5
to 179p. Improvements of 7 were
seen to Royal Worcester, 190p,
and Henry Boot, 280 and AGB
Research added 10 afresh at
300p after demand in a thin
market Among the leaders,
Glaxo put on 6 to a 1982 peak of
693. fresh demand induced by
revived optimism about the U.S.
potential of its Zantac anti-ulcer
drug. Beecbam hardened 2 in
sympathy to 278p but Bowater
lost 5 to 214p as did Unilevef to
583p.

Motor Distributors, selectively
firm of late on hopes of further
rationalisation within the sector,
encountered sporadic profit-
taking and generally finished
lower. Adams and Gibbon stood
out with a fall off 13 to 103p
despite call option activity. Lex
Service eased a few pence to
126p, os dad Henlys at 92p. In
contrast, Braid hardened the
turn to 51p following its defence
document rejecting the bid from
Lookers.

An exceptionally firm market
since the return from suspension
late last week, advertising agency
Saatchl and Saatehi met with
profit-taking and shed 20 to 435p;
the nil-paid shares fell 15 to 105p
premium. Elsewhere, further
consideration of the raid- term
statement lifted McCorqnodale 3
for a two-day gain of 18 to 183p.

Business in Oils contracted
awaiting today's first-quarter
statement from British Petro-
leum, steady at 316p. Shell last
a few pence to 422p. The
announcement that the company
had negotiated a £60m credit
facility to cover tire "next five"
years helped Bnnnah to- firm a-
penny to 144p, while Hamilton

011 gamed- 4 to 109p following--
the dh airman’s statement at the
annual meeting. Elsewhere.
Global Natural Resources, a
volatile market, shed 40 to 660p.

Among Overseas Traders.
Harrisons and Crosfield revealed
lower full-year profits and fallow
tog the chairman's cautious
comments on future trading the
scares reacted 75 to 562p. The

81 per cent owned subsidiary,
Harrisons Malayan Estates, due
.to be transferred to a Malaysian
domicile following a deal be-
tween the parent company and
Permodolan Nasional, added 3
more for a two -day grin of 28 to
16Sp.

•43BO F.P.26fB 278
£90 F.P. - 101
16 F.P.15 4 3E
£260 F.P. 4/6 . 420
§130 FJ’.M/S 164.'
£B71jp F.P.I2S/6 98

§250 F.P. 14/3 250
1 I F.P. - 275
§106 F.P. — (121
140 F.P. - 166
136 F.P. 13/5 141
F.P. ^ 29

15 fj».| rso

Assoc. Hast 8enriceii27B
* Black (Michael) 2p p 101
Cambrian & Gen.?4p 29
*CQflt- Mlcrowavp... «3
: Mruele megs. 154
- Electro-Prot US&8.50 87
•rGroupJnvOptJon,.... 14

5-loTflohTiotogy: ....... 247

■i-Jetmans Drilling-^. 260
in- ini

..... b93 2.1 4,6h4,i;
U5.0 2.4 43143-

+18 b536 33 1.0IB.B:

b2.3 [ 23 2.1 8.7-
-Z uftl-ScSJ 1.011.7

•£>Mllm 33 10a 121

4>Ruddl« IG-llDp 1M

Standard Seas. 132

Stewart Nairn......... 24

'Zambia Cans CprlDK 60

017.5 2.3 93 6,6:
....:. Ud23 4.3 2.41D.5
“ .;.|b33 2.6 2.9 18.4 1
-1 b2.8 13 3.0 383

Golds lower

Golds opened sharply lower in
line with the fresh setbecU in
the bullion price, bat attracted
some buying interest from ail
quarters at the lower levels and
recovered to close above the
worst Gold also rallied from the
morning fix of $3.16.8 per ounce
to close at $320,875, but. toe Gold
Mines index was left with a
decline on the day of 9.4 to 220.0.

Falls off a point and more

FIXED INTEREST STOCKS

Issue “a -Sea
price o-o ® 2*

£ IS 3 k”

High Low

£10 — 10 «s 10ig Bournemouth WaterQS Rod. Prf.'B7 89 lOig

£25 14/7 25 21 U Cred. Foncler fie France VU% Lont3JD7 24i a

P.P. 1/7 102k 101*4 East Anglia Water 0% Red. Prl. 1987.. 101 U
F.P. - — ■ 146lz 136 First Nat. 12ipe Conv. Uns. Ln. 1987.. 142
F.P. - 47 38 GrL N’rth’n Inv. 4pc Net Cum. Prf. £1 39

F.P. - 46 . 46 Do. 4.7pe Nat Cum. Prf. £1 46

were common to President Brand,
£113, Randfonteln Estates, £23$,
Vaal Keets, £25 and Western

Deep Levels, £11*.

Driefontein lost 73 to 939p,
while Li ban on, 6S7p, Blyvoor,
434p and U nisei, 36%> were all
more than 30 lower.

Stllfontein gave up 20 to a low
for the year off 575p in front of
Ihe better-then -e»p ected divi-
dend, and Ruffel s, whose payment
also exceeded expectations, lost
a half-point to £14 i.

South African Financials
were featured by a strong perfor-
mance (from. Anglo American
after, toe previous day’s
announcement of a maintained
dividend; the shares advanced 15
to 455p. other gold-based
counters lost ground, as to
“Amgold," £29} and Gold Fields
of South Africa, £23 both U
weaker, “Johnnies” fell a. point
to £25} and Geneor 20 to 68(h).

Diamonds were mixed, with
“ Anamint ” ] easier ait £23}. but
De Beers 22 to toe good at 2$kt.

London Financials were
largely Ignored. Rio Tinto-Zinc
were marked down 3 to 425p and
Gold Fields 2 to.355p.

Australians drifted an lack of
interest ns ’the recent stimulus
of Far Eastern demand was
lacking. Gold Mines of Kalgoorile
gave up 10 at 195p. while ORA.
at 176n. Bfeekatharra Minerals, at
Z46o, MIM Holdings, at 170p, god
Peko-Wallsend. at 264p. were all
around 6 weaker.

Contracts completed in Traded
Options amounted to 1D13, coan-
nrisins; 735 calls and 278 nuts.
Imperial were again relatively
active with 201 calls taken out,
99 in the August 90’s and 102 to
the August 100’s.

F.P. - 47

F.P. - 46 .

Nil — 1pm 1

£10 — 11

F.P. — lOOTa 1

F.P. — 100

lpm )apm Marlborough Pu)ps.1B%Cnv.Ln. , 88-Z002 iipm

11 11 Mid-Southern Wtr. 8% Prof. 1987 11

Nationwide Bdg. Sot 144 4 « (05/4/83) 1008
Do. 13» b * (23I5/B3) 9BV

FJ». 120/4 113ic lODisloueens Moat IQ t% Cnv.'89-gi 113 t

£10 f - lOis lOizIWraxham .Water 9£ Red. Prf. '87-69... 10X1

“RIGHTS ,T OFFERS

Latest

Ranunc-

1982 I

re

C 0

+ or

date

• a

High

Lem

Stock

F.PJ27/4 2BI6
F.P. 13/5 24/6
F.P. 28/5 917
Nil — —

F.P. 10(6 21/6
F.PJaO/B 18/6
F.P. 29.5 183
F.P. 7/5 4/6
F J». 12/5 7/6
Nil - -

Nil — —

F.P. 14/5 11/6
F.P. 84/3 23/4
F.P. 10/5 10/6
Nil — -

10 Ansbaoher (H.) 5p.

180 Bank Laumi (UK) £J

158 Carlesa Capel lOp.

44pm Grand Met 50p

5 Qrovebell (5p)

675 Hammeraon Prop-

630 Do. A.

144 Ulley (FJ.CJ-..-

176 Low (Wm.) 2 Op

8pm Pros# (Wm.) lOp ...

80pm Saatchl * Saatchl 10p..

272 Steel Bros.......

10ie Sturla lOp

146 Vickers f£l)

is pm Young (H.) ...

10

186

178 ;

45pm
Bl£ +i« -
605 -6 1
675

187 +2
182 -4 ■

6pm

106 pm— IS'

242 :

Ills

160 —2 i

icpm — .

Renunciation date usually taut day tor dealing free of stamp duty, b Figures'
based on prospectus estimate, d Dividend rata paid or payable on pan of
capital; cover based on dividend on full cap Its L g Assumed dividend and yield,
r Indicated dividend: cover relates to previous dividend, P/E ratio based on latest
annual earning a. u Forecast dividend: corn based on previous year's earnings.
F DivIdeod end yield based on prospectus or other official estimates for 19B2.’
Q Gross. T Figures assumed. 9 Figures or report awaited, t Cover allows for
conversion of sham not now ranking for dividend or ranking only (or restricted
dividends. I Placing price, p Pence unless otherwise Indicated. 1 1ssued by
tender. | Offered to holders of ordinary shares ns a "rights." M lssusd by way of
caphallaatioii. ' 5$ Reintroduced, n Issued lo connection with reoiganlsstkxv
merger or tska-ovsr. || Introduction. □ Issued to former preference holders.
■ Allotment letters (or fully-paid). • Provisional or partly-paid allotment letters.
■ir With wsrranfr. tt Cmalings under apodal Rule. 4 Unlisted Securities
Market. London Listing, f E ff ecflvo issue price after scrip, t Formerly
destt in wider Rule 163(2) (e). & Issued Ires as an entitlement to ordinary

holders. '

ACTIVE STOCKS

Above average activity was noted In the following Blocks yesterday

OPTIONS

First Last Last For

Deal- Deal- Deeiara- Settle-

togs togs lion ment

May 24^ June 11 Sept 2 Sept 13

June 14 June 25 Sept 16 Sept 27
Jnne28 July 9 Sept 30 Oetli
For rate indications see end of
Share. Information Service
-Money was given for the cali
of Adams and Gibbon, Pennine
Commercial, Dae j an, Rothmans
International, L & J. Hyman,
Sun Oil, Barker and Dobson,
ICL, Mlnet and John Wadding-
ton. Puts were completed in
Kloof Gold and Sangers, while
doubles were done in Otter i
Exploration, Conrtanlds and
Polly Peek. 1

Stock

Closing

price

penes

Day's

change

Stock

Closing

price

pence

Day’s

change

Adams and Gibbon ...

103

-13

Hanson Trust

1E5

+ 4

Allind-Lyons

100

+ 2

Harrisons and Croaiield

562

-75

BICC

348

- 4

Harrisons Malayan Esta,‘

168

+ 3

Barratt Developments .

301

+ 3

Johnson Grp Cleaners

248

-10

Coalite u....:

117*

+ 1

■ Lake and Elliot

44

- 6

Do . La Hus ;

540 '

-40

Plessey

450

- 3

TUESDAY’S ACTIVE STOCKS

Based- on bargains recorded in S.E. Official tier '

Tuesday's
No. of closing

Tuesday's
No. of closing

FT-ACTUARIES SHARE INDICES

NEW HIGHS AND
LOWS FOR 1982

price

prlca

Day's

price

pries

Day's

Stock - changes pence

change

Stock change* pence

change-

GEC

17

940

-10

Ferranti

9

7B0

+ 5

Ruddle (G.)t...

17

164

—

Las mo

9

340

-14

Hrlsns Mly Eats

13

165

+25

Mmai Holdings

9

184

- B

Plessey

11

453

-10

RTZ

9

428

- 5

Saatehi. and S.t

10

120pm +15

Shell Transport

9

426

- r

BAT Industries

9

448

- 5

Cable & W'less

S

283

- 5

BP

9

318

- 4

t"

Cadbury Schwp
New."

s

102

APPOINTMENTS

These tatices are the joint compflitiM «f the F hancW Thies, the tBttBh of Actnries

and the Facutty ef Actnries

The Wlowlnfl quotations hi the Share
HitarmstJoB Service vcrtein fa v attained new
HlBhs and Low* far 1882-

NEW HIGHS (59)

EQUITY GROUPS
& SUB-SECTIONS

Wed June 2 1982

Tsb Fri Thar

Jme m May-

1 * 28 27

* LSi

OL 1 6ms EjL
hretagif Qk.1 Pfe

Figures in parentheses stare number of Iota | PkA |VW »|Wi8»|' Ms* [ !£«. Wo “« I ““

per section I bo. j Change ] (MkJ [ WCT.I OW | ■ hi No. j Ha Nil f- ha

CAPITAL 60005(209)

Bulhflng Materials (23)

Coatractin(LComtntdiOB(2S)

Electricafe (3U —

Englneerlrg Contractors (11)

Mechanical Engineering (67)

Metals and Mefed Forming (ID-

Otter Industrial MateririsOB) 36UJ

CMSUMCKBMNIPC2ia) SOM

Brewers and Dbtflers (22) 32A75

FoodManutectwing(2Z)

Food Retaifeig(14) ~ 6323*

Health and Household Products (8) — 4377

titbmt — 44838

Mew q iap cf s , PMdbMng (32) S7A2

Padtaofngjnd Paper (14 15836

Stores (45) : — : 25^2

Textiles (23) »5J*

Totoccns (3)- - — 33133

Other Consumer (15) — - 255

OTHER BWOP* (77); —

ChenkahnA)

Office Equhanent (4)-—

Sl^gilnsandTrtteportCB)-—-. »38
IfltoeflaneMg^

nmUSTWAL SWOP (487) 33BJ5

ofcnar

600 SHARE m" ** -868J1

nHAMCIALGR8VPaZ7) Z 2WJ6

Bante(6) — — — OTJJ

Dhcoant Houses (9) — — OW2

toaimcetUWW JgjJ

iBmnce (Composite) GO)— ^ }5t3A

Insmoe Brolterv(7)- —

Merchant Banks (12) —

property (49)— JjJJJ

Other Fiimr t ‘ , f >lc | - 1WT7

I mestmwt Trusts (UD — JJg

MUHng Finance (4)— —

Overseas Trade rs flfl) ■ - 36U5

ALL-SHAM: IMKX (750) — &U&

BRITISH FUNDS (12)

Excfrqr. 11UK (M Trees . 3oc 1087

Excbw. Sue 198* Tkw- I»c 2000

Trees. 12 pc 19B4 Trreo.. TS^OC W-03

TrMS. 3pc 1986 Trees. IlftfC 01-04

Troas. ITiipe 'BS Trees. W-on

Trees. 13 pc 1986 Trees. Shoe "00-12

INTERNATIONAL BANK CT)
Finland 14i,pc 1996

LOANS (II

FFI 14pc 1963

FOREIGN BONDS (II
fc rfeotf i4<H»xn ZOIC

BEERS (10).

Al Ned. Lyons Marnm Thompson

Bass Vamr

Brawn (M.) WhHtoread A

Burtonwood Young Brew. A

Greene King Do. N-V

BUILDINGS (71

BPB Inc* Countryside

Barratt Dews. Falrttouah Gonstr.

British Dredtrino Robarts Adlard

C*it (John) ■

CHEMICALS (4)

Allied ColMds Ftsofts

I Anchor Clwm. Hickson & Welch

STORES «) .

MH Furniture

ENGINEERING (2)

Art ' 4L - CV EOOD^

. Banks (Sidney Ci

HOTELS (1)

Grand MetronoUtafi

INDUSTRIALS (101 -

AGB Research Crest NtcBoboa

BOC Group Ghato

Black (FJ . Henson Trust

Boot IHenrvt Mecfartane Group

Gonsuhants Portib

MOTORS (2)

Aerospace Ene. Flloht R ef ueHInB

NEWSPAPERS (li
Int. Thomson

PAPER (2) .

Chapman Inds. McCowpi iei ele

TRUSTS (11
MAG Dual Inc.

OIL A GAS (2)

Century LASMO 14pc HI-83

Changes at Fenchurch Insurance

Hr & L Earl has- been
appointed managing direc tor- of
FENCHURCH INSURANCE
HOLDINGS. Mr B. A. Morton,
chief executive of the Guinness
Peat Group, has joined the
board. Lord Kissin, Mr Edmund
Del Mr R. A. W . Caine and Hr
P. C. E. Dix have resigned from .
the board.

In addition, the following
appointments in Fenchurch
Group subsidiaries have been
made: Mr M. J. Small, chairman
erf Fenchurch International; Mir
P. W. Bedford, chairman of Fen-
church (UK); Mr B. J. Blacker
chairman of Tudor & Company
(overseas subsidiaries); and Mr
A. N. Wheal, chairman of Fen-
church Grouu Services.

Mr G. E. Knight, chairman of
Fenchurch Insurance Holdings,
also becomes chairman of Fen-
church Underwriting Agencies.

■k ■

general manager on May 31. Mr
Hemingway, who succeeded Mr
Walker as chief general
manager, has been with the
society since 1962.

*

At THE BANK OF ENGLAND
Mr M. T. fit. Smith will succeed
Mr J. S. Westwater on his retire-
ment as agent at the Glasgow

agency on July 1. Mr Smith is
a manager in the Bank’s money
markets division.

•k

Hr Christopher Hiller has
been appointed company secre-
tary of HANSON TRUST.

*

appointed a director of LLOYDS
BANK from June 15. Mr Dunogn
is chairman of Lloyds and
Scottish and of Bowmaker.
k

Mr George Duncan has been

Mr David Dawson has been
appointed a director of NOR-
BAIN DISPLAYS, a subsidiary
of Norbain Electronics.

General Mining

Union Corporation Group

^1

DIVIDEND DECLARATIONS

Notice Is hereby given of dividends which have been declared by the undermentioned companies:

NEW LOWS (52)

AMERICANS (101

Amu. Chase Manhattan

Bank America Coro. Cant. Illinois.

Bankers N.V. Fluor Con*.

Bendtx Oorp. Jnt. Tel. a Tri.

Bethlehem Steer Time tuc.

CANADIANS (2)

loco Trans Can. Plus

BUILDINGS <1>

t * ecft (v ' no

STORES <2)

H Mia mat Soule Sound

ELECTRICALS (4)
Hemolctaeffcx Fteo .

Mitel Coro. Thom EMt

ENGINEERING (33
Brlttah Northra* R-H.P.-

Laird Group

INDUSTRIALS (10) .

Ajnahrd Metal &R- (Nieto.)

Brfdon GtewM Group

Oe La Rve Maretull'a Untv.

Duplo lot Staffs. J Ftets.

FttawUton Wedgwood

I INSURANCE U)

Edln. Gen. Ik. „ „

MOTORS (It

Armstrong Eont.

PROPERTY 14)

Greycoat Ests. Lyntoji. NIdte.

Land Inv. Sfouolt'Ests.

SOUTH AFRICANS (II
Barlow Rand

TRUSTS (3)

Precious Motels Majodle km.

scot & Mere. A

RUBBERS (II

Bartow HUBS.

MINES (B)

Bracken Goto Fields SLA.

Leslie MltkUe Wits.

SUltontorii Ang to- Am, Inv.

pres Wont. Brand KW»«Nr

Geneor

RISES AND FALLS
YESTERDAY

SJSteS.SStorSe Ftewdai.Ttewi Brkkn Houk, Caonon aw«, Larimq, «4P48Y,pri» 15 r * pest 8%.

. Rises Falls Same

British Funds

18

1

73

Corpus. Do in. &
Foreign Bonds I..

5

3

69

Industrials -

144 -

263

938

Financial & Props.

31

. SO

390

Oils

11

36

GO

S

i

1

1

21

Mhm

12

64

83

Others

24

65

60

Totals

246

823

1.684

Mr Eric Nutter has been

appointed rtoud mana g ing direc-
tor of YORK TRAILER HOLD-
INGS. Mr Nutter was joint

managing director of Anthony
Carriraore, the hydraulics sub-
sidiary of the York Gronp.
k

Mr Jack Clare has been

appointed sales director of
ACCRAPAK SYSTEMS.

★

Mr Michael Scott, chairman
I and managing director of Pitt St
Scott has been elected presi-
dent of the BRITISH ASSOCIA-
TION OF REMOVERS. Mr John
Smart, director of A. BL Tripp
St Son, has been elected national
chairman of the Institute of the
Furniture Warehousing and
Removing Industry (the train-
ing arm of BAR).

k

Mr Philip Bolam, head of
grouo agricultural services at
Barclpvs Bank, has been elected
president of the NATIONAL
SHEEP ASSOCIATION. He
succeeds Mr Walter -Smith,
former head of ADAS and
Welsh secretary to the Ministry
of Agriculture.

*

NATIONAL' WESTMINSTER
BANK has appointed Mr Cyril
W. Huxley as chief engineer. He
succeeds the late Mr Derek G.
Halifax.

*

Mr I. B. Abrams and Mr F. D.
Porter will be appointed orto-
tipals of HOARE GOVETT}
stockbrokers, on June 7.

★

LEEDS PERM ANENT

BUILDING SOCIETY has
appointed Mr Peter Hemingway
to the board in place of Mr S. KL
■Walker, who retires" ‘as "chief'

Last day Register of

to register members dosed

Preference shareholders (Trans-N.atal) 25 June 1982 26 June to 2 July 1982

Ordinary shareholders 18 June 1982 19 June to 2 July 1982

No Instructions Involving a change of the office of payment will be accepted after the la$t day to
register.

The dividends are declared in the currency of the Republic of South Africa. Payments from the United
.Kingdom office will be made in -Unieed Kingdom currency at the rate of exchange ruling on the
.undermentioned currency conversion dates or the first day thereafter on which a rate of exchange is
obtainable. '

Dividend warrants will be posted on the dates mentioned below and in the case oT non-resident
shareholders, tax of 15 per cent, will be deducted.

-The full conditions of payment may be Inspected at or obtained from the London office of the
companies 'or The offices of the transfer secretaries.

AM companies mentioned are incorporated in the Republic of South Africa.

Nome of Company

Amount Currency Total

Class Par Comer- Dividend tor.

al Dividend Share a /on Posting the year

Share No. Corns Data Date Description Cants

Go/d and Uranium
BufFelsfontein Gold Mining
Company Limited
Stllfontein Gold Mining
Company Limited

Ordinary SO

Company Limited Ordinary 55 1W) 25.7.82 5.8.82 Interim —

West Rand Consolidated Mines Limited-— In view of the financial position of the Company as a result
mainly of the present low gold price, the directors have decided not to declare an interim dividend.

Asbestos

The Griqtraland Exploration
. & Finance Company Limited Ordinary

Coa /

Trans-Natal Coal Corporation
Limited

The Clydesdale (Tvl)
Coifleries Limited

Ordinary

Preference

Ordinary

7-5,

9.8,82

19582

interim

—

35

9.8.82

.1.945*.

.. final

60

375

9552

19552

Final

7S

475 •

95.82

195.82

Find

75

Note: Chemwes Limited.- The Company in whidi Stllfontein and BufFelsfontein hold 85 per cent and
.15 per cent respectively has declared an interim dividend totalling R6 million.

By order-of the ;Boards

per pro GENERAL MINING UNION CORPORATION (U.K.) LIMITED
London Secretaries
L. J.- Baines .

London Offices London Transfer Secretaries!

30 Ely Place Hiii Samuel Registrara

London EC1N 6UA 6 Green coat PM»

London SWIP IPL

2 June 1982

i

40

Financial Times ‘ Thursday June 3.1982

and Markets

CURRENCIES and MONEY

Dollar weaker

THE POUND SPOT AND FORWARD

% Three
p.ft. months

FT UNIT TRUST INFORMATION SERVICE

SKLMBSU— AlrmOgBUai TRUa'I'S !'jL r _ - - - - r — —

American Growth — (5R8 aJI-tllJ 229

Dollar suffered a sudden turn-
round in nervous foreign
exchange trading yesterday. The
U.-S. currency was very firm in
early European trading, but then
lost ground as a result of profit-
taking in European and the U.S.
Doubts about the future
direction of U.S. Interest rales
led to very nervous market
conditions.

Sterling was very firm,
improving against the dollar,
and other major currencies.
DOLLAR— Trade-weighted index
(Bank of England) 115.7 against
115.4 on Tuesday, and 105.5 six
months ago. Three month
Treasury bills 1L95 per cent
(10.56 per cent six months ago).
Animal inflation rate 6.6 per
cent (6il per cent previous
month)— The dollar fell to
DM 2.3675 from DM 2.3775
against the D-mark, after
touching DM 2.39; to FFr 6.1650
from FFr 6.1750, after touching
FFr 6-2375 against the French
franc; to SwFr 2.0175 from
SwFr 2.0225 in terms of the
Swiss franc, but rose to Y244.75
from Y244 against the Japanese
yen.

STERLING — Trade-weighted
index 90.7, compared with 90.7
at noon, 90.8 in the morning;
90.5 at the previous close, and
9L8 six mouths ago. Three-
month interbank 13 ft per cent
(15& per cent six months ago).
Annual inflation 9.4 per cent
<10.4 per cent previous month)—
Sterling opened at $1.7830-1.7840,
and fell tD $1.7800-1.7810 in the
morning. The decline of the
dollar pushed the pound up to
SI. 7935-1. 7950 in the afternoon,
and it closed at $1.7920-1.7930, a
rise of 50 points on the day.
Sterling rose to DM 4.2450 from
DM 4-2350; to FFr 11.0450 from
FFr 10.99; to SwFr 3.62 from
SwFr 3.6050; and to Y438.50
from Y435.

D-MARK — EMS member
(strongest). Trade - weighted
index 1244 against 124.1 on
Tuesday, and 122.7 six months

ago. Three-month interbank
9.1250 per cent (10.70 per cent
six months ago). Annual infla-
tion 5.0 per cent (SJ2 per cent
prevloos month) — The D-mark
remained firm against European
currencies at the Frankfurt
fixing, but continued to weaken
against the dollar as U.S. short-
term interest rates stayed strong.
The U.S. currency was fixed at
DM 2.3S60, compared with
DM 2^710 on Tuesday, but fell
back sharply to around
DM 2.3650 in Tate afternoon as a
result of heavy profit-taking after
the dollar’s recent sharp gains.
The Bundesbank sold Stflm at
the fixing. Sterling was firm at
the fixing, rising to DM 4^2540
from DM 4.2280, but retreated
with the dollar later in the day.
The Swiss franc was fixed at
DM 1.1719, compared with
DM 1.1731, and the French franc
fell to DM 38.30 per 100 francs
from DM 38.42.

FRENCH FRANC— EMS mem-
ber (third weakest). Trade-
weighted index 79.3 against 79-4
on Tuesday, and 8U six months
ago. Three-month Interbank
16tii per cent (15v< per cent six
months ago). Annual inflation
13.9 per cent (14.1 per cent pre-
vious month) — The French franc
weakened sharply against the
dollar in early Paris trading, but
recovered somewhat later in the
day. Daring the morning the
U.S. currency touched a peak of
FFr 6.2350-6.24000. but re-
treated to FFr 6.2140 at the fix-
ing, the highest level since.
April 23. There was no sign of
Intervention by the Bank of
France, as the dollar remained
well below the record level of
FFr 6.3135 set on April 16. The
franc opened at FFr 6-2300-
6.2350, and stood at FFr 1925-
6.1975 in the late afternoon.
Signs that U.S. Interest rates will
not fall significantly in the near
term, and fears about the posi-
tion of the franc in the EMS con-
tinued to undermine market
sentiment

U.S. 1.7800-1/
Canada 22210-2/
Nethlnd. 4.70-4.74

1 .7800-1.7950 1.7320-1.7830
22210-2.2340 2.2320-2.2330

4.70* 1-4.71 *s
Belgium 7B.SO-SO.fiO 85.15-85.2S
Denmark 14.44-14.51 14.45-14.46

Ireland 1-2220-1.2315 1-2265-1-22)5
W. Ger. 4ZZ2V4.27 l i 4-24-4.25 ,

Portugal 128 .25-130 .25 128.75-130/25
Spain 189.70-190.40 190.10-190/30
Italy 2/347-1356 2.350-2^52

Norway 10.85-10/90 10.87-10.88

Franca 11.02-11.13 11.04-11.05

Sweden' 10.52-10X7

438-440

29.85-30.05

3.60V3.65

2.350-2^52

10.87-10.88

11.04-11.05

10.53»r10.54>a.

438-439

29.97-39-92

3.614-3.62’:

020 -0.30c dls
0.67-Q.77c dis
24-1 4c pm
2Q-30c dis
fiV74or» dls
0.72-0.84p dn
IVI'apf pm '

T 05- 380c dis
S5-80C dis -
23-27 lire dia
2V3 T iora dis
19-22cdfs ..
4-loro dls
2.40-Z/ny pm
15-llgro pm
3V2 1 ic pm

1 O.72-0.82dia —1.72
1-87-1 -97dia -3.44
! 5W 7 i pm 4/35

67- 77 dis -359
74-84 die -2. IB
2.03-2 .«dis -5.96
S-44 pm 4.4?
315-91 5di» —18/92
225-280 dis —5.10

68- 73 dia -11.9S
7>4-84 dis -2.87
«V46>zdis -16.11
Vft dis -0.3S
6.70-6.50 pm 6.02
33-31 pm 4.82
8>,-7\ pm 8.84

( Acorn . UofrJ.— .

OH&Fpted Im.”

Incomu

Ru&efiaM Hngment Ltd. '

ir Bi *ur,Sn.a2AlPO- IH-3B8M06

US — »-S-J-i- ft-mi

mnmmtaona*

iw.TstFd-;

AfcnHwvty & Ross Unit Tst M ug rs.
45, Contdfl, London EC5V 3ffL 014236314.

AHROT Trust I93JJ 97*d-MUI JZ47

JUBed Hmbra Ltd. (a) (g) •

Crescent Unit Tst Itagn, Ltd. (iXo)

4f*hflfcCresL.1a*ntat*3 031^263492

Cres. American- D&6 4L7] HU] 216

Cm. Capital -02 3jf

cS ^ttrB^S tauZ SfjM U3

L & C Unit Ttast B-nuameot Ltd,

The Stock BtdanK MndoaHaW IRA 5882800

afftssnijsa--^ 3 d-.is

Partington Unit Tnsi MngL iM.
Dartngtoi.Totnn Dcrtn'TOWE- 08CBB62271
Total flerf. Unit TaL{22£ 2SJ| ,.„J 5.09

Legal & General (Udf Tit, MngrsJ LbL

5RMetghlhL,BritntM0d • OZ77, 217238

s«=iii js«

RutitfcWd tot Wmgiwnt- .

SU SwMfc’at .wr, t onriCB EC4. fldrC

OL6264S6

■ 02969MI

Belgian rare is for convertible
Six-month forward dollar 1.58-

Irenes. Financial franc 87.50-87.80.
1.68c dia, 12-month 2.65-2i)Oc dis.

Dtsoctionry Udt Fund Managers:

36/38 New Ehoad St, EC2M DHL 01-630*405

Dbc.lK.Mwl4 12803 298.94 —J

Leonine AdndnWratitw Ltd.
2,St-RbyAnvEC3A88P. 0MSS6U4,

BH 31 «

THE DOLLAR SPOT AND FORWARD

Dutar Unit Dust Ungers Lid.
5%PaBbULLmtaiSW25JH. 01-9302122
bsm&6rwdL_J2L9 212-03 §34-

Uoyds Bk. Unit TsL

VnilM^Wst

Ltd- W

Day's

June 2 - spread

7. Three
p.a. months

UKt 1.7800-1.7950 1.7920-1.7930 0.20-0 .30c dls

Ireland! 1.4510-1-4555 1.4620-1.4540 0.754). 65e pm

Canada 1.2455-1.2510 1/MS5-1/M60 Q/&U).26c dis

Nethtnd. 2.6260-2-6530 2.GKO-2.B300 1.46-1/Bc pm

Belgium 44.72-4520 44.72-44.74 5Va>jC dis

—1.67 0.72-0 .SZd is -1.72
5.78 1.95-1.75 pm 5.09
-2.36 0.56-O.GOdis -1.86
636 4.10-4.00 pm 6.13
-1.87 20-25 dis -2.00

E. F, Wncbotcr Fond Mngt Ltd.
^BkxmdxaySvare, VVC1A2RA 01-6238893

Bsts as=j »

01-6231288

1 -03 462

-S3 -« 2
-43 .292

— " - ■ m *

wmiinHB wri
72-SOL Cstehaae

..fcSsSf 1 *

ILUAmcrics
HJ5. America
MCStreteri

Row a n tut That Mngt ft) .

City Owe Net, FWbaryS4,GC2 -BWttlfltt

27.

a-B

E»sl

DcUconU

Jppon Find U&9

Pacific Fund KU

America Spec. Stt. ■£
Sacs. Of America f

Denmark 8.0625-8.1300 80)625-8.0675 2.6S-2.80ore dis -3-96 5-90-6.40dis -3.03

W. Ger. 2^65043900 2^970-2^680
Ponugal 71.75-72.90 72 50-72.60

1.28-1.23pf pm
G0-200C dis

Spam

Italy

Norway

Francs

Sweden

Japan

Austria

5witz.

105.95-106.60 105.95-106.05 22-28C dis

6.36 3.72-3.67 pm 6.24
—20.68 160-525di s -18.59
-2.82 85-95 dis -138

> 1,310-1 J21 1,310V1,3im 11V13 lira dls -11.14 32>.-34i4dis -1CL08

vay 6.0750-6.1000 64)800-6.0620 0.35-0.75orti dis -1JI8 O.EO-I.OOdis -0.52

CB 6.1575-6.2375 6.16S-6.16TO SVIOHc dis -19J1 ZOVZZ^dis -13.84

den 5X675-5.9Z70 6.8876-6.8725 0,50-0 JUora pm 0^1 1.7S-1.S5 pm 1.12

in \ 244-25-246. 00 244.70-244.80 1.67-1.59y pm 7^9 4.73-4.63 pm 7.65

tria 16.77’j-16.83 16.78V16-794 9\-0>^ro pm 6.52 ZPj-ZVj pm 620

2. 2jni0^.0410 2.0170-2.0180 2.06-1 Me pm 12.01 5^5-5 J27 pm 10^3

t UK and Ireland are quoted in U.S. currency. Forward premiums and
discounts apply to the U.S. dollar and not to the individual currency.

Eqdtr & Law Ph. Tr. M. (a) (fa) (c)
Aacnfcamfld.ttighWfCQidie. 049433577
0Kfiwth.Ta.Acc. 1

Bwth-TSLhK-

kd. Technology
Do. (AccokJ _
N. Araerican &
Da."

Itnc. Tit. Ibc.1
WHFadJnLTitAcd
Gifts/ FmL IntTsLlnc I
NBLABMriaTttAgJ
F^EBtJttJocH

>3.1. ■

SmafOasAfieqrl

Do.tAcamJ _L_

WKkhrideCMltu

DoLOtessaJr—

Royal Ufc Fd. MfMt Ltd.

MnrHailPUxv Lhen»0lL693HS 051^274422

WEkfzszm

Rayaf Tst Cam. RL Mark.tM. \

i ; - CanrorSl, London EMM 6LD 01^36 6044
■ Price* m May 28. W ihaRng thy Jn» K.

CURRENCY MOVEMENTS CURRENCY RATES

June 8 .

Bank of
England
Index

Morgan

Guaranty

Changes^

sterling..

US. dollar

Canadian dollar....
Austrian schilling..

90.7
116.7

86.8
117.3

-38.6
+8.8
-19.3
+ 86.4

Belgian franc_

9S.3

Danish kronar.

85.7

-13.6

Deutsche mark..—

184.4

+48.4

Swiss franc...-

146.3

+ 95.8

Guilder

116.0

+ 81.7

French franc

79.3

—14.4

Lira.

64.1

— 58.6

Yon

134.8

+ 29.3

Bank Special European
June 9 a rate Drawing Currency
• % Right* units

Sterling J - 0.626164 0568138

UA 8 J 12 Jl.11662 | • — —

Canadian 9_15.43i — *

hi

Anderson Unit That Ifa n a g ers Ltd.

62; London Wtf, EC2R7DQ 0WS81200

Andersen LLT Ifel 7L4 — J 3.45

AmbMher Unit M»rd. Co. Ltd.

L NoUeSt, EC2V7JA. 062368181

Aafirany MMer IMt TsL MpaL Ltd.

19, VWdegMe SL, London, El 7HP- 01-2478827

AriJuUmet Securities Ud. (aXc)
EC4R2BY.

FiddHy Intcnatranat M atagut Ltd.

20 A2xhardiLs9e.Laakn EC4N7AL 2839911
America trt .. |37 2 +011 B.44

Amer.Spsc.aS3Uz3.K5J 278a ._J —

Gin «, FSd W 25 l# .ZJ UL58

Growth & lTO»ne (35.4 Ml -mSf 6.98

Jupajs Trust tzJ„ l= '‘ "■ **

Max.lnc.E4. Tst.

UojtfS Uft IWt TsL Mqu. Ud.

2 St May Axe, EC3A88P- (0-6236114

Eadiy Aoam. (2)__|2475 50^4+4^1 S32

4, &HK SL Hriens, London EC3P 30* “!

Local AcMiBitttei’.Mnhnl UreesL TSL*
77, Lento WML BC2N1DB. 01-5681815

ixu. —

SeiccS Idara
UahtGfmdi

James Fnday Unit Trust Mngt Ltd.
UU4. West Hte Sinxt, Gtesgow. 002041321

A»ar"“gf i?s=ai n

i Rr*« HWi hra*, 374 «L3 +53 9jS

Price* on Uqr & Nod deaBtg JnwSL

MAG Grata (yXcXz)

Three Quejs, Tower IBft, EC3R6Ba 01-6264588

5H531 iS

hM MU

Eurax-

Austria Sc
Belgian F„

ten Kr.„J 11

Based on trade weighted changes from
Washington agreement December, 1971.
Bank of Engiend index (been average
1975=100).

D mark.....— 7

Guilder B

Frenoh Fr..., B

Lira_ 19

Yen 5

Narwgn. Kr. 9
Spanish Pts.- 3
Swedish Kr. 10
Swiu Fr • 5

fits' 18.7819
14 >50/2381

} 1J3B483
16.8364
48.1838
8.14186
8.39108
8.66883

7 Is 8.66486 2.39102

8 . 2-98178 j 8.66823
9 6.93868 '6/33704
19 1473^4 j 1323.86

5 la 278^02 • 846.311
0 >6.88866 6.10611

6.88866 .6.10611
110.032 : 106.902

0 6.61932 . 5.95359

6la 2 XI 199 18.04198
Ola n*a 64,2755

GreekDr'ch. 20 la na 64,2755
•CS/SDR rata Far May 2B; 1.-50007

OTHER CURRENCIES

EMS EUROPEAN CURRENCY UNIT RATES

ECU

central

rates

Currency
amounts
against ECU
June 2

% change
from
central
rate

% change
adjusted far
divergence

Divergence
limit %

Belgian Franc ...

44.6963

45.1938

+1.11

+1.13

±1.5440

Danish Krone ...

8.18382

8.14181

. -0.51

-0.49

+1.642S

German D-Mark

2.41815

2.38107

-1.12

-1.10

±1.1097

French Franc ...

6.19584

6/23704

+0.67

+0.89

+1.3743

Dutch Guilder ...

2.67296

2.65223

-0.78

-0.76*

+1.6069

Irish Punt

0.686799

0.690505

+0.54

+0.66

±1.6689

Italian Lira

1305.13

1323.86

+1.44

+1.44

±4.1242

Argentina Peaa... '26.006-26,036^

Austral l&Dollar... 1.7100-1.7180
Brazil Cruzeiro. ..'29 1.80 292.80
Rnland MarkkaJ 8^27-8^45
Greek Drachma^ 117.408-117.883
Hong Kohg Dollar; 10.51-10.32 is

Iran Rial ! * 146.60'

KuwaitDInarfKDi 0.51409 -OMU3B
Luxembourg Fr.. 80.15-80/25
Malaysia Dollar. J 4.1075-4.1275
New Zealand Dir J 8.3546-2.3685,
Saudi Arab. Rlyal 6.1348-6; 1415
Singapore Dollar) 3.7685-5.7726 .
Sth .African RancH 1.9476-1.9495 !
UXE. Dirham. .J 6.6635^.6730 <

£

Note Rates

Changes are lor ECU, the ret pm positive change denotes a
weak currency. Adjustment calculated by Financial Times.

14.660- 14,600t I
0.9355- 0.9660
163.35-164.17
4.8935-4.5965
64^0-64.80
6.7680^.7730
81.76*

0.2874 -0.2876
44.72-44.74
2.30 -2.31
1.3150-1.3166
3.4310-3.4320 1
8.10565.1086 :
1.0866.1.0873
3.6710-3.6130 >

Austria.

Belgium

Denmark.

France

Germany.

Italy

Japan /..

Netherlands

Norway

Portugal

Spain

Sweden

Switzerland....
United States..
Yugoslavia-....

I 29.70-30.00
87.50-88.50
14.42-14.56
11.07-11.17
4.24 5-4.28 lg
8305-2365
443448
4.71-4,76
10.75-10.85
126-141
182 > 4.19 Hi
10.40 10.69
3.62 lg -3.86 is
1.77Ie-l;7flia
I 84- 103

r Now om m.

1 SeMmg rate.

EXCHANGE CROSS RATES

Pound St’ rling' U.S. Dollar : Deutschsm'k Japauise Yen FrenchFranc Swiss Frano Dutch Guild’; Italian Ura Canadle Dollar Belgian Franc

Deutschemark
Japanese Yen 1,000

French Frank 10
Swiss Franc

Dutch Guilder
Italian Ura 1,000

Canadian Dollar
Belgian Franc 100

93.10

|. 2.345 j

186.S

! 4.698 j

I 196.4

I 4.947 i

646.8

13.77 ;

! 2361.

8.233

1312.

' 1.245

553.8

0.526 {

| 6361.

5.091 |

2189. '

2.021 |

649.4

0.617 j

499 J

0.474

1000.

0.960

1053.

1.

2931. .

2.784 ,

FT LONDON INTERBANK FIXING (t 1.00 a.m. JUNE 2 )

3 months U.S. dollars

6 months UJB. dollars

bid 14 6(8 ; offer 14 2/4 I bid 14 11/IB i offer 1412MB

The fixing rates an the arithmetical means, rotsided tn die nearest one-sixteenth,
of the bid and offered rates for SlOm quoted by the market to five reference banks
st 11 am each working day. The banks are National Westminster Bank, Bank of
Tokyo, Deutsche Bank, Bnrtque National* do Paris and Morgan Guaranty Trust.

EURO-CURRENCY INTEREST RATES (Market closing Rates)

Sterling

GS

13i B -13i,
13i 8 13 sb
13±.13 A

13ri»-13rt
13*-1 BA
13rh-13S

14-141,

141,-144

144-1468

144-14^*

14ft-14«

144-144

Belgian Franc
Corrv. Fin.

18-19
17is- 18ia
1671-17
16l8-163 4

1-14

898-85,

14-2 -

3. irSA

44-41,

84 8^4

44-5

899-8*4

BSe-81,

19-22

23-86

24*8-2671

24U-25

241i-244|

15- 171i 147a-13 i B

16- 17 1478-18 U

1478-15 l a
1478-1518
1470-1618

23Se-84>i i 151 Z -1G la 149e-146s

SDR linked deposits: one month 14*^- 14 “it per cant; three months 13^-14^ per cent: sue months 13V13V par cent; one year 12^ -13*1* pbc cent.

ECU Mnked depauts: one month 16h*-16'». per com; three months par cent; six months lA^u-ia 0 ]^ per gent; one year 13*i,-13“u per cent.

Asian S (dosing rates m Singapore}: one month 144- 14 s , per cent: three months 14V-14>« per cent; six months 14V14S per .cent: ora year 1Arji,.i4' M per
cent. Long-term Eurodollar two years 14*4-15 per cent: three years I4 r (-)5i| per cent; lour years 15-15*4 per cent; five years 15V15*t par cent; nominal olosing rates.
Short-term rates are caM lor U.S. dollars. Canadian doHars and Japanese yen; others two days' notice.

The foMowrng rates wars quoted lor London ckriJar certificates ol depomt; one month 14.15-H.S par cent; throe months 14.2D-14.30 per cant: six months 14.30-
14.40 per com: one year 14.20-14.40 per cent.

MONEY MARKETS

EUROCURRENCIES

Further fall in London rates

$ rates firm

lnc.-&Grontfc

lAqaar UnSs) 1

Kif* Income. -
Ex«a lac. — ,

mxa=JBt ^^3 SJt

far HU Ufc Office tw Mmce Unit Um.
Brawn SMpfcy & Ce. Ltd. (aXg)

Hariaotb Use, Haymnb Hth, Sx. 0444458144.
as. UrttsJwel„ [289.5 3Q&SI — .J 5.43

as. Aocm June 1—4227 5553 -

Fteatcial 52-2 ^ -02 4X1

GnwthAcasn. 348 fez -06 4/H

Granth fnaxne 5w 64JI -Oi 4/M

High Inaxnr 349 269 r 10.61

income—, 212 njn -a; si?

Index. — 1 34.4 37.M -0.1 482

North American 265 »5| -pj 2.03

Orient -BA LOO

teemety 1AJ 17^| -O.jj 5J9

Tec bnoteay— jnj

Co. Ud.

Ql-59B28b8

UK clearing bank base lending
rate 13 per cent '(since
March 12)

Interest rates continued to
ease in the London money
market yesterday, with three-
month interbank funds declining
to 13 A per cent from 13 A per
cent.

Day-to-day credit was in
slightly short supply, although a
surplus was expected at the be-
ginning of the day. According to
the first forecast from the Bank
of England the market was ex-
pected to show a surplus of
£100m, but this was revised to
£50 m at noon, and to a shortage
of £50m in the afternoon. The
major factors were: bills
maturing in official hands, and
a net market take-up of Treasury
bills -£142m, offset by
Exchequer transactions +£90m.
and a Call In the note circula-
tion +£40m.

The Bank of England did not
intervene during the morning,
but bought £32m of bank bills
in the afternoon to inject a small
amount of liquidity. These were
by way of £26m in band 2 (15-
33 days) at 13 per cent, and £6m
in band 4 (64-84 days) at 12} per
cent

In the interbank market over-
night loans opened at 134-132
per cent and stayed around 12}-
13 per cent for most of the morn-
ing, before touching a peak of
13H4 per cent in the afternoon,
but falling sharply to S per cent
at the close.

In Frankfurt call money was
slightly firmer at 9 per cent com-
pared with 8.975 per cent on
Tuesday, and conditions are ex-
pected to be fairly tight for most
of the coming month. Large
corporate tax payments will
drain liquidity, probably re-
quiring an extension of assis-
tance to the money . market
through securities repurchase
agreements. Two agreements,
totalling DM 12.5bn expire on
June 7 and 14. Today's central
council meeting may be the
occasion when a new repurchase
agreement is announced. The
authorities are unlikely to wish
to see any excess liquidity
driving down interest rates, how-
ever, as this would further
weaken the D-mark against the
very strong dollar.

from 5-6 per cent Period rates
also ^ showed an upward trend in
line ‘with firmer U.S. rates. A
special liquidity advance expires
today, covering normal financing
requirements in excess of quota
allocations, and it was hoped that
the Dutch central bank would
offer a further advance to the
market Fear about the direction
of U.S. interest rates is likely to
keep any further help below the
expiring FI 2.4bn advance, how-
ever.

In Amsterdam interest rates
showed a firmer trend, with call
money rising to 8}-8i per cent

121- 3-Month*

Eurodollar
Rate 1

Eurodollar interest rates were
firmer yesterday, but this failed
to prevent an easing of the
dollar in spot foreign exchange
trading as a result of profit-
taking after Tuesday's sharp
rise. The firmness of Eurodollar
rates also led to a decline of
the U.S. currency in the forward
market.

Euro sterling rates showed an
easier trend, in line with softer
domestic London interest rates,
resulting in a strengthening of
the pound in forward trading.

Other rates tended to increase
as Eurodollar rates moved up.
Euro D-marks were slightly
firmer, and Euroyen rates also
had a slightly firmer tone. On
the other hand Euro Swiss francs
were easier, while all these
strong currencies improved
against the UJ3. currency
forward.

French franc rates were little
changed, after Tuesday's sharp
rise, but Eurolira rates were
firmer, widening the Italian
currency’s forward discount
against the dollar.

SnaHer Cos. Dfv. .

5SV sfEn

Hsallntenst

Mutual Unit Trust Managers (aXg)
BrtwJ*. Are- BtooAeMSl. EC2. 01-638 39LL-Z.

aa&ssdi i-m

Fw Tc raar.lM tThBt plane •
Duafaar IMt Thai

National ProvM mt lav. Mops. Ltd.

4Sl Gracedbmh SL, EC3P 3HH. 01-6234200
NPI GOl lkl.Ttt._p2S 772x4 540

UWznra. U n it s)- 7K 112iSJ -53 5.40

m

Trades (fain IMt Tmt Managers

lOUWbod Street, £.C2 01-628001

TU 1ST June 1 16&1 724 I 5-D7

rttjr)-

Gk*»ST«h_. L

Na tio n al Westminster (a)

■■Molts Juk2J
MaranreFiLjDiKU
CAocum. Uts.) JweB
Sntr. Ctfs Fd Mara

(AeamUsJMwK

Pacific Exempt Tsl__

NEL TVust Managers Ltd. 04 (g)

MBtonCoirt.OaridnaSenty. 0306887766
Sato z.-. - - 80-9 4.96

Hexagon Sen de es Ltd.
4Gt-SLMxtenvUwtaiH3P3EP 01-5510094
BrewmiML6r.Hc._BL0 5171 +OJJ 4 jB

IHBAEb

I3f-H

S!Sa

Canada Life Unit Trust Mngrs. Ltd.

2-6 HigliStvPHttn Bar, Herts. P. Bar 51122

WfifadS ut

Do. Income DhL ^,,1

« Samel Unit TsL Mgn.r (a)
*Beee*SL,EC2P2Ut
J BrttMl Tnm__.iZLL3

9Bsgsg*^** a»

On

GBt&Fxd. hit That.

Capd (James) Mngt Ud.

100, OM Broad St, EC2N1BQ.

01-5806010

(g>Rw

ffilRaWictal Trust. „
Q9Bi4rFW.lM.TSL.

NorthAiprrtcwi -Is 264

Pnoes at Jim Oort dealing Jraelfa.

Carr, Sefeag UnR Trust Mangars(a)
57ffi2l Princess SL. Manchester 061-2% 5685

tor, S^jag Cap. Frt.MA QUA j 236

terr, SCboglnc. F«L..bl3 .... J 610

CKrS55flf^Eftsfn_&1.4 . 3531-Mi L79

Cfaarinco Charities Nflt Famt#

15, Moecgate, Loadoa B 2 . {16384121

Notwi cl i Itam tnsurance Gratp (fa)

P.O.Box 4, NofWd^NR13NG. 060022200

Groap TsL Find [5262 556XH -2A| 4.99

£eari Trust Mwgm Ltd. (aXgXz)

2S2, HighHotjor^ WC1V7EB. 01-4059441

RBViGrtPHttRL {343 37JI -M i,.7Q

IMt TsL- I <Wj 5L4W

(Aochb. Units) His 793-43

Geo. Exenxx Bfcq; T7.

HK Unit Trust Maingm Ud. (a)

3 Frederick's W., akfJewy.CCZ 01-58841X1

HKrarariraxTsL ,„ K .7

PcSan Units Admin. Ltd. (gXx)

57-63, Princess SL, Maadwtgr. 0612965685
fWean Units (336.4 146£ -07) 4.72

SHSSIS:

flown May 28 J

H K American Tsi...

HKnrEaa«%H|

MONEY RATES

LONDON MONEY RATES

NEW YORK

Prime rate

Fed funds (lunch-tune
Treasury bills (13-wesk)
Treasury bills (25-week)

I Sterling

June 2 [Certificate Interbank
1382 , or deposit

GERMANY

Lombard

Overniqht rate

One mnnth

Three months .
Six months

Overnight

2 days notice...*

7 days or '■

7 days notice... 1
One month ;

RIWM „ Diecount 1 Eligible Rne

Authority .negotiable House Company Market Treasury Bank Trade
deposits ! bonds Deposits Deports , Deposit*: Bills* [ Bills* Bills*

13-13l« ™ ~ 13-13 >4 18-13 i ^ | - [ Z

15<4 — »

Charities Official Invest Ffandtt
77 London Wart, ECZN1D6. 01-5081815

SWll8z=;| |rd I 49

Clileflaln That Managers ltd (a) (g)

U, NewSL. EC2M4TP. 01-2832632.

Anericantz) 1 ““

Petpetal Unit 1M Mn^nL (bV(z)

48, Hart SL, Henley an nan*; 0993261

Growth- BL6 80 .....J \

USSssr^sM 3 H I

HK Scatter Co’s Ti.
HK Technology TlL—

FRANCE

One month ; 13^- lja

Two months. 13^-13,^
Three months.: 13^-12 r A

Six months.. ! la-iZ-i

Nine months...- 1342is

One year 131270

Twoyears,.;..... —

131< I3ls ,
I 13)0-1512 I
I 13)4-134) !
I 13 1(1-13 >4 I
I 13-1510 i
! 13413,},

Z37g-131z
13^1338
13V13i8
121q-181 h
13J«-13 .
13t4-127 S

- 1312-135#, 13 ■

Z3<4 Z5is 15 ,

134 151s IS >4 -181b

13U 13ie 12S8-13J*

13), - - - ,

13U _ _

15 U • - -

FarEmmTtt.(z)_
HU I
Irff.Ti

Bade Resenes TsL .

iafsR£

Imolimt Bvdt of Inbo, H

Cfaeotfiton Fond NtaaageHfg)

57^63, Princess SL, Mmrtmtsr. 061,2365685

Grpwttl- — |13A -Oil 4-i2

ntei uiU o m l feu sJ3 120

High Income Sa-rfUl 10.71

Investment In^dligence Ltd. (a)

U3W0Rhip9L f |iC2A2Aa 01-6286626

littL wns'. Tech. ftt_|71L2 7481-051 020

inW. Ik. 3o3 -qi) Zxft

Intel Sirafl Gift Fd_tll6T 124ad-OJl 350

P rac tical farasL.Go. lid. (yXc)

44 r Btoemsbon>Sg, WC1A2RA . CD -6S 8099

aaiKbdB .H =| til

Pt wiwla i LHe her. Co. LbL
22S,BMapsgU.EC2.

PrefflteFarEari
PreeiicfiKCN).

safes? 4 *

SggBES&B-

Pmmsf^sAgy.

TSB (hot Ttods (b) (c) (y) ; ;

py« a WHiBlte, Aadner, Haatj. SP1D IPG.
OBM.tSlSB. ■ Duffga; tD 0264 0432-3

01-2476533
I-O-M -UQ

"S3

-ad u2

-ag ins
-ffjf a»

feadd. Ows.
DolAccwa

Intervention rate

Overnight rate

One month

Thru months

Six months

.“"2T!!? h,5,,SBS “•y w dav “’ ,Tther3 9ewfln <lBy * fl * ed - l^nv-term local authority mortnege

is. flonwiBUy three years 13 3 * car earn: Four years 13 7 . aer eenh True veere T9J. no, 4n.ni. u:ti .

rates. nomuisUy three years 13>, par eeni; four yeere 13’» per «i*h five yoars T3», per cent. 4>Bank bill rates m nttle
eent bUiWnB r ^*®* ,0r wwnc P 4 **® 1 ’' Odykig rwe» for louc-montn bank bdis 124 per cant: lour -marrths trade bills 13H per

Aw*«)rimale setting rates for one month Treasury bills 12"i» per cent: two months 12 a » par cent: throe months

JAPAN

Discount rate

Call (unconditional)

Bill discount (three-month).

per ccn*. Approximate selling rate lor one month bank bills l2“u per cenu two months 1Z“» per cent and three
months ly* per cant: one month trade bills 13>u Per cent: two months 1»* per com; throe months 13»* per cent.

Finance Houses Baso Rates (published by th* finance Houses Aaeodauon) 14 per cent from June 1 1982. London
and Scottish Cfaanng Bank Rates lor lending 13 per cent. London Clearing Bank Deposit Rotes (or sums at seven days’
nonce 10-KHi per cem. Treasury Bills: Average tender rates of diveoun* 12.<S75 per cent-

Certificates of Tax Deposit (Senes 5) 13% per coot from May 14. Deposits withdrawn for cash 11 per cent.

High Income B9J SH -ifill 10.71

Confederation Funds HgL Ud. (a)

5^ Chancery L»e,WC2AlME. QI-242028Z

Growth Rjod BL9 B62| +L2 4J4

Craig mount Unit Tst Mgri. Ltd.

Buddenbury.LfladoiiEC4N880. 01-2484984

Ugblncome — [35/2 38.41 -02} 92Q

$L2 -M 2M

CmkBsi Exempt* 48jh Z9>

■WMdydeafhGdwVWnfay.

Key Fund Managon LbL (aXg)

i/3- WonWpSL.EC2Ai!AB. 0142866%.

feps vigidM ^

PludL Portftdn Mngrs. Ltd. (a) (fa) f c)

Hdbcm Ban, EdN 31H. 01-405*2

8 SS 3 fe=;®

MeyExerratfitj
Kryiwsmefindl
key Fixed ii*. RL

"M-hu

195 a! +18

wdfier ttangemeat Co. Ud.

31-45 Gresham Street EC2 01-6004177

ijMj 17631

Ulster Bank (a)-

Wsrleg Street. BeMasL Q 232 35231

UdUfater Growth |458 -493 -OJJ- 524

IMt Traw Acceont & Mgmi. LbL

Wra'faWamSt, EC4R9R. 01-6234951
Frwra Hss.Fund__. 154-8^ sa4j .„.J 487.

•Wwral Benson Unit Managers

20, FcfldxrdiSL, EC3 01-6230000

K4.Urilrd.lnc. 11223 1369 J 5J7

K.BUrilFdAc_JI l£o TftW “J 5J7

jC8.Ftl.l w.Tg, ~ML7j \ ~J QM

rawSim^’inc.!

kBHjghYldAoc_|

NOTES .

yra t yabjWj ra'ssjMa ethcnriK hxdcewrand
*hw 4a0yCed s«ttn prefix rofW to U^.
dri^VI^^UxMuintm^^MitaraU

— -

* n1,\:

5^--

hs;>-

-^t ; • ='

Set-

.,v — -

if-

fee ■

•hitr*-.

Is,

S??.

fe-: '

Mfarecc Unit Mva. Ltd.

warn* fee, Turirite Wdh, KL 0B«2227l

to* |g

.jear

Price Jv» 2. Not darting Jure 9?

price, d

h^hWh uftw free

S?;-

Mi.:

I

r

44

the active lenders

TCBLtcL,CenmrwHoi«c,BrirfrtonBN13FX.
Telephone: 0273-23511.

Thursday June 3 1982

0952 613131

Nato plans troop cut initiative

BY DAVID TONGE, DIPLOMATIC CORRESPONDENT

NATO COUNTRIES are propos- forces to a maximum of that Western governments are Jistic missile warheads deployed
ing a major initiative to break 900,000; a ceiling of 700,000 is well equipped to deal with a by each of 'the two superpowers,
the long deadlock in the mutual proposed for ground forces. series of anto-Nato protests President Reagan is emphasis-
and balanced force reduction M(WM( ohiected ihit the ’ planned to coincide with the ing the need for a cut in Soviet
MBFR. talks in Vienna. fl “ pS, does SlSk Z' S’ 6 ? 111 ® ■* ■—* United land-based; interc^tinentai tat

_ _ . , „ lh . w „. ( tn Nations Special Session on Dis- listic missiles (ICBMs) because

rs i aSs zxi ****** ^ ** ■ -»» *« *

Charter bid
for Anderson
goes to
Monopolies
Commission

THE LEX COLUMN

A stronger

irindple that Nato summ it Se”nd m^'phasi ™»»t in New York. their <M ta « rnmmi«lifttl ‘

in Bonn next week will endorse Nato Governments now appear During a visit to London to

a revised two-phase programme ready to commit themselves to emphasise U.S. commitment to *3 ei £riJf Allied-Lyons is making pro-

tn reduce Nato and Warsaw the ceilings. the strategic arms reduction By «*y Maugtan gress-pre-tax profits, stripped

. rr be rr ajuss jsst? ssMaESEs

fficials involved. ' wlLJi ir?tor non Control and Disarmament ®JL?f bmarmes ^ are by Charter Consolidated for to March, and each of the past

mdTNato St” W. yesterday iStdtSa; accuse. .

and of Nato forces by 90,000. Vrea .JL nt Reagan ^ewed tv, e The_ U.S. is pressing for each

In the past the two sides have !? a or w«o rarces oy w,uuu. p -^ . - ReaKan viewed the The U.S. is pressing for each
ien stuck over the first phase The precise figures are disputed Mace movements sympathetic side’s ICBMs to account for only ,

been stuck over the first phase ine precisi
of the programme. This would by Moscow
involve the U.S. withdrawing The Nato

The Nato move is designed to

peace movements sympathetic siae siusms to accoum lor omy
Sy and took liiem seriously.- <* *« ™“lear areenal Dur-

13,000 troops and the Soviet revive the Vienna talks. It is
Union -pulling back 30,000. In also intended to defuse criti.-

ing a second phase of the talks.
In the Start talks, due to be- it proposes turning to air-based
gin in Geneva on June 29, strategic systems and setting

the Glasgow-based mining three half years has seen an
equipment manufacturer, advance of 13 per cent or more
Anderson Strathclyde, has on its predecessor,
been blocked by a reference Beer volume was well down

the seennd phase, the two miii- cism of President Ronald Washington will propose a one- limits on missiles' “ throw-
tary alliances would agree to Reagan as he starts his tour of third reduction an the 7,500 weight." and destructive pqtea-

reduce their air and ground Western Europe and to ensure submarine and land-based bal- tial.

by the Department of Trade last year, but trading profits
to the Monopolies and Mer- (helped by the Australian asso-
gers Commission and will elate) are pushing ahead as
accordingly lapse when the Allied daws back the free trade
decision is announced form- business lost in the Ansells
ally today. strike and begins to benefit

Kent miners
vote for
all-out strike

BR steps up pressure on Aslef
with productivity offer to guards

It is not clear whether Charter, t), e ensure 0 f. the. Bir-

an industrial and mining fin- mingham brewery in terms of

ance holding company, will lower total- overheads and
submit to a six months’ inves- better capacity use elsewhere,
tigation by the Monopolies Lyons’ U.S. businesses are

Commission or. whetheivit doing weli-^the picture at home
will seek to dispose of the 28.4 j S mixed — while wines and

cent holding m Anderson spirit, helped by a currency-
Strathclyde it acquired two re ] a ted boost to export margins,
years ago. .. are now comfortably the

By John Lloyd, Labour Editor

BY PHILIP BASSETT. LABOUR CORRESPONDENT

of i°nn r«. *■*“«»*" BRITISH RAIL is offering its Members, of the. Associated ments^ including flexible

THE PROSPECT of national guards a special -payment for Society of* Locomotive Engir rostering,

industrial action in the coal- accepting the key productivity, neers and Firemen are. still J3R j s expected to send

fields increased yesterday as improvement of more flexible working _a 40-hour week' and either today or tomorrow a

«« gSjyGff highest-earning divisten?
propoaaJs, the^Qffice of Fair I Wines and wWts ma

■ ' a . ■■ terda> J s results for the year to »n|^

Index fell 2.2 ta 585 J. M p^Sits have fallen from £33ni ’ *

„ • ■— to £21.9m pre-tax, thanks tq pro- . it

visions' of f9m made in the

i 1 bank-note business and a trading

IQOt --/Hi - . ... .. loss. of £4.Sm at Crqsfield Elec-- f

\ | tronics. The stock market's

yv H , - record of predicting De La .Rue - fll t*

an .. . \ _ • ' _ earnings is hardly distinguished, dl T

- I . ' but- yesterday's 45p fall Iri the }■» *

I : share price to :535p -was stilt \

__ • 1 a exceptional After the debiting '

. Or IT - of two years’ worth of ACT, the , ■

. I •. I higher dividend, is: mot covered ’

• \- ' 1 - by current cost earnings. ;

70- V — Vf- . - -De La Rue -is understand;.

A \ I baly coy about ■ detailing -"the
Afiinuvmicl K. provisions In its; banknote . ..

bo *■ - division, but they. ■ apwrentiy '■ K - -

I ™ late t0 Parent. dlSmOties. -

AN-stani bdn with a small number of cjiehfe I'"'

ej r r ' -r- 1 and to uncertainties about wia*

- -1979- *80 : *81 - ffS-J in progress at the Dublia 1

printing plant. " ■ /-.

prwposjau., umw w Wines and sotrits mav nnlv the dirwtwrs the onmnanv Kvireitfuj- owiw

SSSrtfa mark tLe- thff^r whife a Sng S^over
presence of -major holdings slri |. e - at . Ly ons . cakes offsets had time for reflection — ^whicb

5? t he excellent iceKn-eam weather, is not the case in a market raid.

But there should still be a But it then spoils things by V*"

tion of scanners brought 'Croi-

neias mcreasea yesieruay as improvement or morn ucaiuic nviiving a -nniuiri net* uiu eitner loaay or lomorrmr a a “ mercer situation: uui . * ik,s ©uoluv* ouu u

Kent's 3,000 miners voted for work rostering- The offer will will receive no extra payment tetter to the NUR and: the T n one instance AreyR Foods modes t overall advance on
all-out strike from June lfl. increase pressure on BR’s train until they accept flexible ' Confederation of Shipbuilding withdiw «s contested £S7m back of higher beer profits

e a But it men spoils things uy

the . assuming that directors can be ?f C9 j~ J5 ’.2® ■? ™E*iSS-

They also decided to seek sup- drivers to drop their opposition rostering.

port for their action, which is ta the proposal.

Engineering Unions

BR hopes that Aslef members suspending the closure of its

over a pit closure, from other BR made the offer to seeing guards on the same engineering works at Shildon,

areas of the National Union of negotiators from the National trains wortengg shorter hours Co. Durham, and Horwich,
Mineworkers. U nion of Railwaymen, the and being paid more might be Greater Manchester, and its

offer for Linfood Holdings
and Great Universal Stores
is now expected to undergo

uiuuwi ail duvdutx via uic awuuuug ui«l uucvivio mui _ t-_*. .... - , ^

| ba £ ” f ,£i* her **.*~Jt , % KLAJSSiSS

.jr._ TTniAinoe I The share price is back to interests of. their shareholders , t . otsmnmnc imapn" t *.■

loop, a level which — except for (this only monsths after the miV d!2Sf % ,Sd fLTi ' 1
a brief visit m 1979-has hardly Royal Bank bf Scotland fiasco). 5.SRH , St < - “

per cent yield is :almost double

r asTTSsr ssTta? sss «

— . . ." , . uuiun ui niuiyvnymcu, me piuu uwit — _ 7 , — ’ , 7 . d xoiiu asic«u unci 1 ■ - ^

The decision had the support largest rail union. The NUR induced to accept the flexible rundown of the plant at Empire Stores (Bradford) rumours again, -but- -Allied s t ^ re ? ny ' Harrison*;

r.F M, &HK«r Cn,r. . f" \ . ... 7 “ „ _ Cu.i n ^ nn «h- ln« ntronll mu^uc oiwiw »*««« ■». hnrraw nnc ,w now ,«rl chance of an filioflttn rievelnointr. OaiTISUTO

in advance of Mr Arthur Scar- had said that an initial BR offer - rosters.

Woin 6 mH of a sp**™ 1 POTent for flexible gR-js poised to send out the of6 ’ 000 ^ obs ;

Swindon, with the loss overall rha tll- D iainiv identified borrowings are very stable- and chance of an auction developing.

e nnn . . t i*. In otfipr. umrrl.c »rp

■ . | ' - j -11 -.-It v> « ‘’K'-'-iu* VIL A UUlbCU LU 3CUQ \JUl UIC

w nf ™«ering should be improved rosters, but it is likely to

f ? r *u w,d ? ni J lg of the dispute t0 take acc0UI jt of the longer- receive a further rebuff today

at the union’s executive meet- terra prosp ective saving.

ing next week.

rosters, but it is likely to letter is designed to bead

receive' a further rebuff today off Industrial action threatened
when- the Aslef executive meets, by the NUR from Monday. It

ioXment nnScet income gearing is no longer- In other words, shut-outs are ■ Harrisons’ second half trading

the mining equipment marKei i a r.™* iIth,.

~ Th e offer.- wbicb is likely to The executive is expected to will stress, though, that the

. A“® he put to the NUR executive insist on non-cooperation at move is not a reprieve for the

° L ° 5 ; ™ u „ i,°„ n next week, is in addition to the local level with the rosters, and workshops. BR will say closure

Showdown Colliery, one

pay effectively being confirm its rejection of BR’s is still its favoured option, but

4.V T7--L ,..L; a L L_ r CUCVUVCJ* uciu; VUUIUUl ua ACJCLUUU Ul WILD — —

A P i«' USSi K« e S received by NUR members offer of a 5 per cent pay rise that it is willing to talk on the
running at an annual loss of after . fte iz iro duction of a 3S . frora September, strictly tied to issue.

running at an annual loss of after t ^ e

M The board wants to transfer hour w “ k -
or make redundant 550 miners,
leaving 200 for development T 1_
work aimed at opening a new I Q n
face in two years. UttU

A meeting of more than 1,000
in the mining village of Ayle- by BRIAf
sham — whose economy is wholly
dependent on Snowdown — voted A FUTUR

by a large majority to reject the ment wonl

NCB proposals and bar. miners Transport

from accepting redundancy the labour

terms on pain of losing union far an in

benefits. policy. The

The Kent pits were at a plan a nati

standstill yesterday. work and

A significant minority at the read and r

meeting objected vociferously to This is 1
the sanctions, a confident

The vote was won after a drawn up !

speech by Mr Jack Collins, the Albert Boi

area secretary, in which he told port minisl

his members that their jobs -with road,

were “held in trust for the next unions affil
generation." ^ t]

The Kent area officials say f **li*“r
they have had encouraging re-
sponses from’ leaders of other . SSu» J”
coalfields to .their plans to
spread the dispute. JJSfSSJ!

The West Midlands and Kent
area of the NCB said last night raaves or '
that- no talks were planned be- ft would
tween the board anS the NUM. tiv e powers
The board appears unwilling to ^®y respoi

withdraw its proposals, and

ready to tolerate industrial

action — at least in part be-

cause a strike in Kent will save

it money. kJVWVA

• Next week’s meeting of the

NUM executive will debate a RY Mirtu

call from Kent for a national

delegate conference to discuss BOND CO!

agreeing productivity improve- Fear for workshops, Page 11

strategy of a“^ S the & *

Sterests and Ss recognised shares look- « solid investment. ’ &•*£**** was ^tlyjxsed figures tow little light on ge ;
that there are few alterna- not an exciting one. by GUS to tie up nearly 40 per proups likely progress .

tiw Si hid forAnderson cent of Em lwre Stores— which Malaysiatusation deal announced . ».

SSfcStai £ \U ttkSS? CSI nilpc would have been an exceedingly on Tuesday. - •

Strattclyde in . .^1 rai« powerful platform in the The plantation interest*;::

t A? inoBflls agoraercharrt absence of a Monopolies bounded back to exceed their !

CSI rules

plantation interests

Labour plans transport authority

monaiS ag( L^ ef1C !!r! ^sence of a Monopolies bounded back to exceed their !

were growlmg about reference. The institutionsthat interim profits by 70 ner cent, j - -

SSnSSSfrtSSSSS sold were toking much the same That- had somethingfto do ^ L •

«rill fmm thpir Tt»*l ~ j „ . ~ _ VV 7 *1. SOia WBTC lOKing mucll me same - i wuieaun« to uu will} -

"ft *S2JSl «-?**-> T*™ «« » > ?«■ 5 - 'SBP5 =

function the managements
both companies involved.''

Council for the Securities
Industry. It seemed to this

raid, except that they had the P°® r rubber crops in the early

BY BRIAN GROOM, LABOUR STAFF

saw JTMS ssr-JStAG&a

t S 0 «& e -, d Zo«^ e T. «• tank foolish IV the emer- #*»' .Uta ,taftai

A FUTURE Labour Govern-
ment would form a National
Transport Authority to fulfil
the labour movement’s hopes
for an integrated .transport
policy. The aim would be to
plan a national transport net-
work and co-ordinate local
road and rail services.

This is the main thrust of
a confidential draft document
drawn up by the team of Mr
Albert Booth, shadow trans-
port minister, in consultation
with road, rail and maritime
unions affiliated to the party.

The authority would plan
investment and co-ordinate
policy and operations. Its
members would consist of
management, trade union,
local authority and represen-
tatives of transport users.

It would have few execu-
tive powers, and leave day-to-
day responsibility for road

and rail transport with local
authorities and nationalised
industries.

. However, the authority is
seen as having a decisive
advisory influence on a Gov-
ernment committed to in-
creasing investment and sub-
sidy, to reverse the falling
proportion of overall spend-
ing allocated to transport,
and to enlarge the role of
the public sector.

The document still has to
come before Labour’s home
policy committee and its
national executive, and the
TUC general council. It has
large areas of imprecision, hut
it seen as an achievement for
unions with a history of
rivalry and disagreement

A larger role for the public
sector- is envisaged in road
haulage, ports and shipping.

Labour does not under-
estimate the problems of

sending more goods by rail,
rather- than road. Apart from
rail investment it would seek
to do that by agreements with
freight consigners and trans-
port industries rather than
direction, although It would
take powers to licence long-
distance road freight move-
ment.

Road haulage would be
more strictly licensed, but
the practical problems of
nationalising it are restated.
The aim is still a “publicly-
owned share of the road
haulage industry.”

On bus transport, the docu-
ment puts forward the con-
cept of a ** minimum service ”
which authorities would have
to provide, within their
limits of revenue and subsidy.

There would be a ' new
authority for shipping, with
powers to acquire and operate
services “ where desirable."

Strathclyde’s importance as a answer to the fundamental — and
major employer in the Scot- complex— question of a fund fee
tish economy. The bid. how- manager's responsibilities. The tn
ever, has been attacked by a raids were duly stopped, but the ^
group of 12 Scottish Labour market was to some extent

gen ce of a higher offer.

the effect — * 1 . be gauged by a

No doubt the next exemption corresponding fall of over £3ni

ever, 'has-been attacked by a HESS SSTSSEto the ViSlSftS* f0r St “ come . ■!*?**. \ F .

group of 12 Scottish Labour market was to some extent rm.hS lb only a 30 .per cent stake

irp<; 9Mino inrienenifontlv nf cha*lr<£ul A —i. Up ID arms again . The trouble . V. . ^ a * w P e ■ i : —

MPs acting independently of shacUed. A paragra^ was later up in a^s again Tbe trotLble
Anderson Strathclyde. What slinoed in IS JrLd • ^ -that there are basic eonfUcts 2L.J?®

Anderson Strathclyde. Wliat slipped in exempting agreed ' S*£LS5"* re 03510 ““«» Harrisons loX
has became known, as the bids from th* rtST ™T«: urhifh interest on many questions • .

has become known, as the bids from the CSI rules, which h P tv«Si rh^

“ Scottish card is understood on the face of it looked reason- • th€

to have played a decisive able, given that the rules were t> ® the

part in the reference. directed against rapid, aggres- “ ard y do otl ' (er

Harnsons looks a fairhr : - - ■
ordinary conglomerate, though t."

mc-iwctu uic juiHiLuuuuh reu-

resented on the CSI. It oan p™, which still has, a. uscfal t w . e
hardly do other than fudge. involvement m ptentato^s and

The Department of Trade is sive takeovers. Yet merchant
thought to have considered the bankers are now purring con-

long-term effects on the Scot- tentedly in unison — as much a

* a number of busineSsK-
Hp T a Rha particularly timber and chrome

_. “ nu . products— -which ar e highly

The share pnee of De La Rue geared to the. level of activity.

tish economy of its effective sign that something is wrong as shot up throughout the late Where the " share price goes '

insulation from merger was the rising of -their I97f>s as the flock market frbni its present 562n (down 13b '

activity and the removal of collective hackles. thrilled to the high-technology over the past two da vs V will he ;"i

thp diSrinlinP-S which would Tbp f!S['s anmisT i-onnrl cave nntonKal nf +Ufl /inmh.Fi.-’r. j- J i r j

activity and the removal of collective hackles. thrilled to the high-technology over the past two da vs V will he ;"u

the disciplines which would The CSI's annual report says potential of the company's decided in part on the use 1 WKCW ■

otherwise be imposed on that there are arguments for scantier business and the attrac- which Harrisons chooses to i

Tnaraopmpnt hv takpnvpr And amin« 1-Vlio avunmtiinn linn* nl nnn(». , Jm .L T. . 1 - -•

management b,
threats.

There are strong pi
the preservation

identity and the Department for ibe exemption on the fair made abundantly- clear. by yes” reflected' in aTi .per' cen^vieML ! - ; '

would have been able to refer : ; —

back to its conclusions on the l : — 1 : ,

Second sale in two days for Bond

BY MICHAlEL TKOMPSON-NOEL IN SYDNEY

bid by Hiram Walker for
Highland Distilleries.

The most recent decision on
these lines maintained the
' independence of the Royal
Bank of Scotland in the face
of bids from Standard Char-
tered Bank and the Hong
Kong and Shanghai Banking
Corporation.

CORPORATION, the (31 per cent), two of the Australia’s second largest life

what action to take over job main quoted company of Mr smaller Cooper Basin partners, office. Its acquisition of con-

lasses in a number of areas. Alan Bond, the Perth entre-

I Weather

Continued from Page 1

: 1 « partner in. Australia's rich Bond borrowed A$130m to

.1 Hnanian Cooper BaVin oil and natural fund its purchase . last

gas project, to the National September of Western
bond market where prices fell Mutual Life Association of Australia's only brewery, Swan,

by up to S of a noint vesterdav Australasia for A$136.8m The group’s total debt will fall

The paper matures in 1987, l£80-5m) cash. from about A$250m tn an esti-

AJan Bond, the Perth entre- Mr Bond said last night in trolling interests in Reef and

preneur, yesterday made its Sydney that the proceeds, of his Basin, together with its stake

second hig disposal in two days, company’s withdrawal . from in -Santos, have given it a key

It sold the bulk of its share- Cooper Basin would be used to involvement in Cooper Basin, UR TODAY

holding in Santos, the major -repay borrowings. where a huge oil and natural WARM with thundery showers,

partner in Australia's rich Bond borrowed A$130m to gas liquids project is being Orkney and Shetland
Cooper Basin oil and natural fund its purchase . last developed at a projected cost of Fog at times sunn
gas project, to the National September of Western A$1.4ba. . Max 17C fB3Ft

from about A5250m to an esti- Mutual ^bought 20.45m Santos

iveloped at a projected cost of Fog at times, sunny periods.
W-4ba. Max 17C (63F).

In yesterday's deal. National Rest of UK

carries "a i48~oer rent cannon deal means that Bond mated A$55m to A$60m. shares from Bond for AS6.68

and is priced at nar (100 mr has raised A$188.5m in cadi in “We are now substantially ^ c *\ gl J i '}P g per

P ncea 31 P ar (IutJ Per .. — j.. it. t. j shareholdine. Bond Co re oration

Sunny periods, thundery
showers — heavy in places.
Max 27C 181F).

cent). the past two days. On Tuesday undergeared," said Mr Bond. snarenwaing. aona

There are eleven co-manaeers soW through the stock mar- National Mutual which on retted 2.1m shai
in additten to tile two lSS ket its entire interests in Reef Tuesday was a leading buyer of per cent, of Santos,
managers. The lead-managers oil * 49 centJ and 0il Bond’s Reef and Basin stock, is Opting for cash. Page 29

shareholding. Bond Corporation Outlook: Little change,
retained 2.1m shares, or 1.37 2 —

ISN’T IT

TIME YOU HAD
SECOND THOUGHTS
^ABOUTYOUR
COMPANY MEDICAL
INSURANCE?

'WORLDWIDE

have undertaken to seil 8155m

of bonds each, while the co- r n nti-niipd from Paffp 1
managers have commitments of v “' onmiueQ Ir ° m ra 6 e A

S40m each. Some managers yes- 9

terday offered the CanadVm I I 01*1*1,

bonds at discounts of 2 per cent | | ^|| i X*

or more, because of the huge

size of their selling commit- _ ... . .

raents. The borrower, however,

i& a Triple A-rated sovereign «, Thls s 25®!?ii al i y mcreases

Harriers reinforce Army

Y’day Y'doy

midday midday

«C *P OQ

Ajaccio F 25 77 l. An^.t F 14 57

Affliors C 20 68 Luxmfag. S 26 79

AmsOm. S 28 79 Luxor ■ — —

Athens F 27 SI Madrid C 16 81

— — Majorca S 28 79

troops got there. ■ •

U seems clear that the

swept in and took a key pass. Bsigrc
Apparently referring to Tues- JS 1 "

and regarded as one of the finest 131 e air strength of the Task majority of the troops — there day morning. McGowan says : a

HUB regdra™ one m me nnesu EVw™. at a lima urfcon the Aromu 9 m Hium a T, nn <.«A<,ri ** ~ .ru_j » . £

Barclna. S 21 70 Malaga ' 5 22 72
Boirut — — Maiia S 23 73
Ballast S 22 72 M’chstr. S 25 77

Beigrd. S 28 82 Meibna. — —

Bwfin S 3) 86 Mx. C t — —

Biarritz C 19 88 Mwmit R 23 73

BrnglMn. S 25 77 Mrtan S 27 .81

As a watched Royal Marine liackpi. s 22 72iMoiKrt.t c 15 59

F 24 75 f Moscow S 21 70

names to come to the Euro- ^ orcG at a ^ me when the Argen- are 5,000 officially announced as “As a watched Royal Marine liackpi. s 22 72 I Momri.t c 15 59

market Sizeable demand for the tine *** Forcc * Iess acUve ,n on tile islands with 3,000 in Commandos on our flank ? ori ? x - l 24 75i Moscow s 21 70

Sir^wal SS to S remSl J* I« week, may weU decide reserve, marched on foot from stormed the strateghSly “l SSfr s F S EjSSB B f! *

j'esterdav from central banks. ta mo J* nt ^ major attack west to east of the island of Two Sisters ridge overlooking Brussels s 27 si 1 Naples F 28 32

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t" Max Wilkinson writes: The
U.S. dollar cimtinued to move ' Stanley,
ahead in early trading in la a i
London yesterdav after its rise tbe Mil
on Tuesday. Its Bank of England cas ualtie
trade weighted rodex aeainst a Argentin

rites- Tho as “te British move on East Falkland. Moody Brook.” ’ b «*p«- s

d to move Col Andrew Whitehead, com- Opposition . was slight. Cardiff c

fading in 1 a r . se P arale amiounMment nianding officer of 45 Rival “Specialist troops were cas’b'ea c
cer its rise toe Ministry confirmed that Marine Commando, said on tele- involved in sporadic fire fights £f fla B

¥h 2! vision yesterday; “It Eas been as Angentine patrols fell back gE* J

on East Falkland.

Argentine ammunition dump

BudjiM. S 28 82 Nasaau — —

.. . _ Cairo Nwesn. F 24 75

Slight. Cardiff C 23 73 N Yorkt F 17 63

were Cas’b'ca C '20 SB Wjcr t 24 75

fiEhtS T - WKxwiB S 23 73

I Chwg.t R 13 55 Opowo. F 19 66

1 OaCK Cologne S 30 86 Osto S 22 72

S 28 79

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cost voluntary group schemes paid for medical insurance^et a second opinion,
by employees themselveSjPPP is expert (^ntectyoufneax^tPPPBranch

at providing just the right level of cover Manageror ask yoursecretaiy to return
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an epic march — the longest, took to the hills for Stanley. Cpdbgn. s 25 77 pans

carrying full Jcit across rough • - We found enemy trenches Corfu s 26 79 Parth

country, in the history of the with boots ammunition and SSK s S is ESm r 12 «

commandos. In the context of clothing still in them. Obfvnk. s 27 si m*o 5 e« — —

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SfBftol

nsr.

*»«» sissj;

listed with a firnine of been booby-trapped by Argen- rorrespondenf LesUeDownsad f *'« s 5

Eurodollar intereri rates; but it tme.forces shortly before their 11 *“■ 5660 a Herculean that e5 ?° British batallions | * ® Sa,zbr s

fell bark later in the day because surrender. They reported that effort - •- ***: s - » « SP*iKf

of profit-taking. _ .

*. The movement mirrored that , ^ Ministry indicated that rerover very quickly and ready He 7000 A recn H Qe 6*«»w

of the French franc which there had been British casual- to fight soldiers pulled ’back Into a gST

showed early weakness, but ties, without giving further In a pooled dispatch clearly defensive perimeter £Zu

strengthened later, although details. It announced that in filed on Tuesday, and therefore Troops could see the land- H - ^

three Argentines were killed. The men were fit .enough to p ort gtanlev

that • British batallions KS5T I * J J?Bt

surrounded the Argentines at Fw » w f te 64 s. Moniz

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Oirarop her House, 94b London Road ■'Telephone 0533542213

Liverpool

Private Medical
Care for Companies.

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soldiers pulled back into

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Hoternkj S 23 , 77 1 Sydney — —
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Tavistock House Swuh.’EsviMock Spare-Telephooe 01-JSS 2488
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there was little evidence oF accordance with the Geneva apparently relating -to events mark Q f * hp ™ 0 w^nvprpd rnnf f a « Td Aviv c 25 77

official intervention. There Convention on war prisoners, which took place mainly on 0 f p ort stanlev Social and Lo" 1 * 9 ' S 22 7a ' T “" B " lt s 25 77

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Southampton

Sewrish Life I Ioiw^cw Road -Tdt^w* 07 0326916
Sooth East Arca_

were rumours at the weekend an inquiry into the incident had Monday, Robert McGowan of shootinn Club Davilion

of a devaluation of the French ordered. . the Daily Express spoke of how \ staff officer said the Araen- 1 Jare ° 1 '

franc, but the markets appeared Reporters with the troops on “ specialist units ” through a tines were in a “classic defen- 1
to beHeve that any such a ction the Falkland yesterday prfr bitterly cold night bit .Argentine sire position; a horseshoe round

l.o. Man S 16 El Tokyo — —
Istanbul — _ T’/ortttt S 11 62

Jareey S 23 73 Thkm F 27 81

Jo-hurg Votonoia F 23 73

L, Plow. F 23 73 Vamco 5 27 81

Lisbon F a 73 Vienna S 27 81

Pynsbain Hcmh^ CnKcem KnadjTnahadgB^feJlj- "laephone OEM 40M
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SuMaroaaHm«^31r35 Oa endoa Road -Tdcphom; 0923 48823.

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was now unlikely before the vided graphic descriptions of poste in S' U& ^rou^ifo^ * S 9WSSL I S S

economic Dimmit meeting due some of the positions established lookiiis the ranffat*- while the Mnmiv ■ hatn* l ? n &> n F 26 Trzuneh s 2 s 77

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E2“. ! ^SSn^SS 8 dUe ^ positions established looking the capital' while the bloody* battle indeed if they £&L, V F

- -to-start in -Versailles tomorrow, by. Tuesday, and of how the para.' to whom 'I 'am attached, decide' to slug- it out.”

d/- P— Fau-. fl— Rain. S— Sunny.
Noon QMT tMnptranra.

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